ZTE changes CEO to comply with US deal

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ZTE received a month-long pardon for its business operations in the United States in the beginning of the week. 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.

The report from Wall Street Journal says two more key employees were removed - the CFO and the head of human resources. They are the latest additions of Team Disgrace and join three vice presidents and heads of legal, finance and supply chain departments. According to the US Department of Commerce, these employees are guilty of intentional breach of

embargoes.

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.

Source | Via

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