ZTE Trying To Get On US Good Side With New CEO
ZTE has named its new CEO and re-shuffled senior management as it tries to get the US to remove the seven-year ban placed on the Chinese manufacturer.
The US has partially lifted the ban until August 1 telling the Chinese company it can resume some business activities.
ZTE appointed 20-year veteran Xu Ziyang as CEO, replacing Zhao Xianming. Ziyang last role was heading up the company’s wireless-network products.
Ziyang is joined by Wang Xiyu, Gu Junying and Li Ying who were named, CFO and vice presidents, respectively.
Changing senior management was one of the stipulations ZTE had to comply with to get the ban lifted with the company agreeing to pay US$1bn in fines.
The appointment was announced in a Hong Kong Stock Exchange filing.
The US and ZTE have been going back and forth over the trade ban with President Donald Trump lifting the trade ban less than a month ago and US Congress repealing the decision weeks later.
The trade ban has hit the Chinese smartphone company financially with its stocks diving 27 per cent after Congress voted 80-10 to reinstate the ban. ZTE claims the ban has already caused losses of US$3.1bn over rising costs.