HONG KONG (Reuters) – ZTE Corp (0763.HK) (000063.SZ) has appointed a new team of top executives including a CEO to comply with a deal it made with the United States to end a ban on U.S. firms supplying parts to China’s second-biggest telecommunications equipment maker.
ZTE, in a statement to the stock exchange on Thursday, named a former head of its Germany business, Xu Ziyang, as its new chief executive.
Wang Xiyu, Gu Junying and Li Ying have been named executive vice presidents, the statement showed. Li Ying was also appointed chief financial officer.
ZTE had promised to overhaul its management within 30 days of agreeing a $1.4 billion settlement with U.S. authorities in June, aimed at lifting a seven-year supplier ban.
On Friday, ZTE said it had received authorization from the U.S. Commerce Department’s Bureau of Industry and Services (BIS) to conduct certain business from July 2 until Aug 1. The statement confirmed a notice issued by BIS earlier this week.
ZTE, which relies on U.S. suppliers for core components, had to cease major operations in April after authorities imposed the ban, saying the firm broke an agreement to discipline executives who conspired to evade U.S. sanctions on Iran and North Korea.
As part of the settlement, ZTE agreed to pay a $1 billion fine, put $400 million in escrow, and hire a U.S.-appointed compliance monitor. It also agreed to replace its board, remove all members of its leadership at or above senior vice president level along with…