Wafangdian Bearing Co., Ltd. issued an announcement stating that the company has noticed the “Specially Designated Nationals and Blocked Persons List” (SDN List) recently released by the U.S. Department of the Treasury (OFAC), which includes Wafangdian Bearing Co., Ltd. The company stated that it has immediately hired a team of domestic and foreign lawyers to actively search for the reasons for the sanctions and verify the rationality of the relevant sanctions with OFAC.
ZWZ is the largest bearing technology and product R&D and manufacturing base in China. It has many years of practical experience in bearings and related fields, has established a complete technological innovation system, and has significant advantages in technology R&D, product manufacturing, marketing and user services.
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“SDN lists” are usually developed by specific countries or international organizations to implement economic and financial restrictions on specific individuals, entities or countries. Hu Mingming, a lawyer from Liaoning Tongfang Law Firm, said in an interview that being included in the list may hinder the normal trade exchanges of enterprises, especially in international business.
According to the 2023 annual report disclosed by ZWZ, the company achieved operating income of 2.193 billion yuan in 2023, of which export business income was 180 million yuan, accounting for only 8.21% of the total operating income. In the first half of 2024, export business revenue was 76.2611 million yuan, accounting for 6.79% of the current operating revenue. The company stated that as of now, it has not established a branch in the United States and has no significant assets.
ZWZ Bearings Group Cor.Ltd emphasized in the announcement that the company has been adhering to the principle of legal and compliant operations since its establishment and strictly abides by the laws, regulations and relevant regulatory rules of the regions where its business is located. In response to this incident, the company stated that it will actively communicate with all parties, continue to pay attention to the progress of the incident, and do various response tasks to minimize the impact on the business.
An unnamed market source said that as a leading company in the domestic bearing industry, ZWZ has its production base and main sales market in China, so the impact of this incident on the company’s overall business may be limited. However, there may be certain challenges in international trade and cooperation in the future.
