ZTE Trying To Get On US Good Side With New CEO

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The new CEO reportedly is Xu Ziyang, the former head of ZTE's Germany branch.

As part of the settlement agreement reached in June with US authorities, ZTE promised to overhaul its management and it now is.

ZTE, the Chinese smartphone maker that was banned from operating in the US this past April, may already be resuming its stateside operations. The statement confirmed a notice issued by BIS earlier this week.

The US banned ZTE from buying any American electronics parts after the company violated US trade laws by selling products to US-sanctioned Iran and North Korea, then covering it up and lying about it.

ZTE has removed Zhao Xianming as the company's CEO.

The company also agreed to pay a $1 billion penalty and put $400 million in an escrow account as part of the deal to resume business with USA suppliers, which provide nearly a third of the components used in ZTE's equipment. 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, within 30 days. The South China Morning Post report is as yet unconfirmed, but identifies Xu Ziyang, now president of ZTE's Telecom Cloud and Core Network product line, as chief executive. New Chief Technology Officer Wang Xiyu was formerly a deputy CTO, and new CFO Li Ying was only promoted to vice president earlier this year, according to company insiders.

As part of its efforts to appease United States authorities, ZTE has replaced its board and appears to be revamping its senior management line-up. Li Zixue was appointed the new chairman while the previous board led by Chairman Yin Yimin resigned.

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

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