ZTE has named its new CEO and re-shuffled senior management as it tries to get the United States to remove the seven-year ban placed on the Chinese manufacturer.
ZTE was forced to cease major operations in April after the United States slapped it with a supplier ban, saying it broke an agreement to discipline executives who conspired to evade USA sanctions on Iran and North Korea.
After being hit by American sanctions, Chinese multinational telecommunications equipment and systems giant ZTE has roped in Xu Ziyang, an in-house executive with experience in product research and operations, to serve as its new CEO. Xu, a former managing director of ZTE in Germany, has been with the company since 1998.
"In the environment of a Sino-US trade war, in the "white terror" of a technology war, all executive presidents including me have signed termination contracts to formally leave the company yesterday", Zhang said. This became a huge problem since they get a third of their equipment from USA suppliers.
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. It has 90 days to fulfill its other obligations. It's estimated to have lost billions of dollars in revenue - and the halt to its operations has strained relationships with major customers. ZTE shares in Hong Kong rose about 2% and Ericsson gained as much as 1.1% in early trading in Stockholm.
This deal is facing criticism from some members of Congress, who cite national security concerns.