ZTE allowed to resume some U.S. business activities just months after 7-year ban issued
09 July, 2018, 03:49
Chinese tech company ZTE has tapped a new CEO as it scrambles to fulfill its end of the bargain with the US government.
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 US sanctions on Iran and North Korea.
Under the reprieve, ZTE will be allowed to conduct business with American companies to maintain existing telecom networks and mobile phones and to support security features, according to the department's order.
In other executive appointments, Wang Xiyu will be ZTE's new chief technology officer, Yang Jianming is the new supply chain chief, Xie Junshi is to head up operations management, Wang Xiang will lead strategy and investment, and Xu Feng is in charge of the terminal department.
ZTE, the Chinese smartphone maker that was banned from operating in the USA this past April, may already be resuming its stateside operations.
ZTE declined to comment on the matter.
Zhao Xianming is no longer the company's CEO, ZTE said in the statement.
The company will terminate employment contracts with former senior management, including a number of Executive Vice Presidents and Senior Vice Presidents by Thursday.
ZTE has suffered huge losses from a shutdown of its operations in the wake of the U.S. ban.
The US said it would let the Chinese tech giant to temporarily re-start some of its business operations as it considers lifting a seven-year ban imposed on the firm.
The Commerce Department's new ZTE authorization is meant to only give China's second largest smartphone manufacturer the ability to provide support for current customers as well as make and receive payments involving current company contracts.