ZTE names new CEO in quest for U.S. reprieve

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ZTE names new CEO in quest for U.S. reprieve

The ban came as a punishment after ZTE in 2017 failed to fire employees who illegally shipped United States equipment to Iran and North Korea.

USA authorities are allowing China's ZTE Corp.to resume some business with American companies, temporarily easing a ban imposed over the telecom giant's export of sensitive technology to Iran and North Korea.

Xu Ziyang, ZTE's former managing director for Europe, has been appointed ZTE's new CEO, with the company also announcing a new CTO, CFO and head of human resources. The statement confirmed a notice issued by BIS earlier this week. The US imposed the ban against the Chinese company earlier this year, saying that it failed to comply with punitive measures imposed after allegations of lying about equipment sold to Iran and North Korea.

But in return, the Chinese tech firm had to pay a $1 billion fine, put $400 million in escrow in case of future violations, allow a us compliance team to be embedded at the company, and change its board of directors and executive team within 30 days. 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. In addition, ZTE has removed five executives including Xu Huijun, Zhang Zhenhui, Pang Shengqing, Xiong Hui and Shao Weilin from executive vice presidents posts.

Some employees and analysts have expressed doubt over whether a new board and management team could settle in quickly enough to lead the company out of the woods even after the ban is lifted.

Other elected officials include Li Ying, the current Vice President of ZTE's finance department as the new Chief Financial Officer.

The inside of a ZTE smart phone is pictured in this illustration taken April 17, 2018.

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