ZTE replaces entire executive team to comply with technology ban deal

Daniel Fowler
July 9, 2018

ZTE, which employs 70,000 people in China, had described the move by the USA regulators to cut it off from its U.S. parts suppliers as a "death sentence".

ZTE Corp, the Chinese telecoms giant hit by USA sanctions, has tapped an in-house executive with experience in product research and operations to serve as new CEO as it endeavors to get back on track as quickly as possible after receiving the green light from United States authorities to resume business for one month.

Xu Ziyang, former head of ZTE's business in Germany, is the company's new CEO, according to an unnamed source cited by The Wall Street Journal. The statement confirmed a notice issued by BIS earlier this week.

ZTE said in exchange filings late on July 3 that Xu Weiyan, a shareholders' representative supervisor in the company's supervisory committee, has resigned due to personal commitments and no longer holds any position in the company. In April, President Trump announced a ban on ZTE buying components from USA companies, for allegedly reneging on some conditions of a previous settlement related to illegal sales to Iran and North Korea.

Under the agreement, it will replace its management, pay $1 billion in fines, and place another $400 million in escrow.

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"It's been 16 days, and today we finally got to see the Wild Boars' faces", he said , referring to the name of their soccer team. Divers have brought the boys "food, electrolyte drinks, drinking water, medicine and oxygen canisters", the AP reports.

As part of the deal to lift the supplier ban, ZTE had agreed to remove all members of its leadership at or above the senior vice president level, along with any executives associated with the wrongdoing within 30 days.

The company also named a new chief technology officer and a new head of human resources, WSJ said.

Some employees Reuters spoke to have expressed concerns about whether a new board and management could settle in smoothly to successfully revive the firm without the help of veterans.

The Shenzhen company last week appointed Li Zixue as its new chairman.

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