ZTE names new execs in step to lift US ban
hong kong — ZTE has appointed a new team of top executives including a CEO to comply with a deal it made with the United States to end a ban on US firms supplying parts to China’s secondbiggest telecommunications equipment maker.
ZTE, in a statement to the stock exchange, named a former head of its Germany business, Xu Ziyang, as its new chief executive.
Wang Xiyu, Gu Junying and Li Ying have been named executive vice presidents, the statement showed. Li Ying was also appointed chief financial officer. ZTE had promised to overhaul its management within 30 days of agreeing a $1.4 billion settlement with US authorities in June, aimed at lifting a seven-year supplier ban.
On Friday, ZTE said it had received authorisation from the US Commerce Department’s Bureau of Industry and Services (BIS) to conduct certain business from July 2 until August 1. The statement confirmed a notice issued by the BIS earlier this week. ZTE had to cease major operations in April after authorities imposed the ban, saying the firm broke a deal to discipline executives who conspired to evade US sanctions on Iran and North Korea.
As part of the settlement, ZTE agreed to pay a $1 billion fine, put $400 million in escrow, and hire a US-appointed compliance monitor. 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, and punish responsible executives.