Saturday, 15 December, 2018

ZTE names new top executives in step towards US ban lifting

16538062879_89cf701314_z ZTE allowed to resume some U.S. business activities just months after 7-year ban issued
Ginger Lawrence | 09 July, 2018, 03:44

Chinese telecom equipment manufacturer ZTE Corp, has named a new CEO to comply with its deal with the get a supplier ban lifted.

The US had imposed sanctions on ZTE for illegal sales to Iran and North Korea but the Chinese company agreed to take corrective action.

Chinese telecommunications company ZTE has reportedly named a new chief executive and other leaders as it seeks to comply with US -imposed requirements to get back in business in the country.

Under the agreement, it will replace its management, pay $1 billion in fines, and place another $400 million in escrow. It also agreed to replace its board, remove all members of its leadership at or above senior vice-president level along with any executives associated with the wrongdoing, within 30 days. Five executives, including Xu Huijun, Zhang Zhenhui, Pang Shengqing, Xiong Hui and Shao Weilin, have been removed from executive vice president posts.

In other executive appointments, Wang Xiyu will be ZTE's new chief technology officer, Yang Jianming is the new supply chain chief, Xie Junshi is to head up operations management, Wang Xiang will lead strategy and investment, and Xu Feng is in charge of the terminal department.

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A ZTE spokesman declined to comment.

It managed to avoid a 7-year supplier ban after reaching a settlement agreement with the United States in March 2017 that included a $1.2 billion fine.

The mixture of good and bad news is just the latest chapter in the saga of ZTE, which has seen its prospects and stock price rise and fall in the past few months over access to technology it needs to sell telecoms gear across the globe.

President Trump then caused a bit of controversy when he signaled that he would intervene on the issue as a favor to Chinese President Xi Jinping.