ZTE Changes CEO To Comply With USA Ban, USA Government Lifting Ban On ZTE

ZTE Crop has appointed a new CEO to comply with a deal that they made with USA government to end ban on U.S firms supplying parts to ZTE China's secong biggest telecommunication equipment maker. 

To comply with the US deal, the company was required to reprimand 35 high-ranked officers, including a total overhaul of the board of directors. Today ZTE removed its CEO and appointed the former ZTE Germany director Xu Ziyang as the new leader, Wang Xiyu, Gu Junying, Li Ying, have been named executive vice presidents, the filing showed. Li Ying is also appointed as chief financial officer.

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ZTE had promised to overhaul its management within 30 days of agreeing a $1.4 billion settlement with U.S. authorities in June, aimed at lifting a seven-year supplier ban. It received a reprieve from the ban earlier this week to continue existing business from July 2 to Aug. 1

ZTE, which relies on U.S. suppliers for core components, had to cease major operations in April after authorities imposed the ban, saying the firm broke an agreement to discipline executives who conspired to evade U.S. sanctions on Iran and North Korea.

ZTE was found at fault for providing high-frequency antennas to Iran and North Korea, both of which are under a trade embargo from the United States. About one-third of the components ZTE uses are US-made, and the company is on the verge of shutting down, after paying fines but declining to remove its head officials. The latest shuffles aim to please US authorities and enable the Shenzhen-based maker to continue operations.

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