ZTE names new CEO, other top executives to comply with US mandate

China’s ZTE names new leaders to comply with US deal

China’s ZTE names new leaders to comply with US deal

The U.S. Commerce Department is allowing China's ZTE to partially resume business operations while regulators mull over whether its seven-year ban should be lifted.

The Trump administration is letting ZTE Corp resume some business activities while the United States weighs an end to a seven-year ban on the Chinese telecommunications company.

ZTE has promised to change its top management within 30 days of agreeing a $1.4 billion settlement with USA authorities in June.

The company's new CEO is Xu Ziyang, who had headed up ZTE's German division. Li Ying will also serve as chief financial officer. 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.

U.S. President Donald Trump negotiated a new deal, replacing the ban with additional fines in what he said was an effort to save the company from that fate.

The easing of restrictions did not come soon enough for ZTE's bid to win a contract in Italy to supply wireless equipment to Wind Tre SpA. The company's installment of new leadership comes just a few days after its previous board of directors resigned.

The new authorization from the Commerce Department will be in effect from July 2 to August 1, according to a document obtained by Bloomberg.

As ZTE scrambles to meet all the demands, its business continues to suffer.

Earlier, ZTE appointed a new board and Xie Daxiong as the new chairman to re-start the telecom business.

On July 3, ZTE also announced the departure of a senior executive via a stock exchange filing.

However, the assistance offer has drawn widespread criticism from lawmakers in both parties, who warn that ZTE poses a national security threat.

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