ZTE Corp has carried out several managerial changes. The Hong Kong Stock Exchange has got information from ZTE about the decision of the board of directors to remove from office Zhao Xianming. Xu Ziyang, who now occupies the position of the cloud unit head, will become a new CEO.
In addition to the CEO change, the company has got rid of 5 top managers, among whom was the chief financial officer. Moreover, ZTE promised that the dismissed would no longer be able to occupy any posts in the company.
Ying Li, Deputy Director of the Financial Unit has got the position of Chief Financial Officer.
Similar global changes were made on the basis of the US request. In April they introduced a 7-year prohibition for ZTE on the acquisition of American technologies. The company plans to form a group of specialists appointed by the American side. They will monitor compliance with the conditions set by America.
The US has eased the sanctions and allowed ZTE to resume operations. The company will be able to update the software for mobile devices and will establish making and receiving payments for certain transactions. Easing will be operating until the company fulfills all the US conditions, which is expected by August 1.
Personnel changes are not all what ZTE is in for. It is obliged to pay a fine, totalling $ 1.4 billion.
The Chinese company supplies communication systems, devices and technical solutions for companies, users and operators. It is on the fifth place in revenue among the firms that supply similar equipment. ZTE produces smartphones, tablets, modems, hotspots and terminals for home PCs. The company has got more than 500 partners in 160 countries.
The material was prepared with the participation of Anjela Chromova,
a leading analyst of the brokerage company CT Trade