ZTE names new CEO, other top executives to comply with US mandate



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. Li Ying was also appointed chief financial officer.

NEW YORK/HONG KONG-China's embattled ZTE has received a temporary reprieve from the USA government to conduct business needed to maintain existing networks and equipment.

ZTE has named its new CEO and re-shuffled senior management as it tries to get the USA to remove the seven-year ban placed on the Chinese manufacturer. The statement confirmed a notice issued by BIS earlier this week.

The department said it imposed the ban on ZTE because the company breached a 2017 deal in which it agreed to pay a fine for violating 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 USA -appointed compliance monitor.

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.

ZTE has removed Zhao Xianming as the company's CEO.

New CEO Xu was most recently president of ZTE's telco cloud and core networks product line, according to past media reports.

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.

The company also named a new chief technology officer and a new head of human resources, WSJ said. The South China Morning Post report is as yet unconfirmed, but identifies Xu Ziyang, now president of ZTE's Telecom Cloud and Core Network product line, as chief executive.

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