ZTE appoints new management to comply with its U.S. deal

The ZTE logo on an office building in Shanghai

The ZTE logo on an office building in Shanghai

ZTE, which relies on US 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 USA sanctions on Iran and North Korea.

Chinese telecommunications company ZTE has reportedly named a new chief executive and other leaders as it seeks to comply with US -imposed requirements to get back in business in the country.

The Wall Street Journal claims the former head of the company's German business Xu Ziyang will be confirmed as early as later today, with a new CFO, CTO and head of HR also set to be named.

Some employees and analysts have expressed doubt over whether a new board and management team could settle in quickly enough to lead the company out of the woods even after the ban is lifted.

Probably following the directive of US President Donald Trump several weeks ago, it looks like the US government is giving Chinese tech brand ZTE a little room to breathe.

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The company also named a new chief technology officer and a new head of human resources, the WSJ said. This led ZTE to suspend many of its operations and warn of risk to its survival, since it gets 80% of its components from United States suppliers. It has 90 days to fulfill its other obligations.

The Commerce Department's temporary reprieve for ZTE is set to run from July 2 through August 1, media reported on July 4.

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

Shares in the company are down more than 50% since the stock started trading in June after a two-month suspension.

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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