The management overhaul was among the conditions laid out in the settlement deal to have the ban lifted.
Chinese telecoms giant ZTE announced a new board on Friday in a radical management shakeup as part of a $1.4 billion deal with the United States, moving it closer toward getting a devastating American supplier ban lifted.
The United States slapped the crippling seven-year supplier ban on ZTE, China’s No. 2 telecommunications equipment maker, in April after it broke an agreement to discipline executives who conspired to evade U. S. sanctions on Iran and North Korea .
The management overhaul was among the conditions laid out in the settlement deal to have the ban lifted.
Li Zixue was elected as the company’s new chairman, ZTE said in exchange filings late on Friday.
The old board and senior management, headed by Chairman Yin Yimin, have tendered their resignation on June 29, it added.
The company, which ceased major operations after the ban, has 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 U. S. suppliers – who provide almost a third of the components used in its equipment.
But the U. S. Department of Commerce has still not worked out the details necessary for lifting the ban, with the deal facing strong opposition from some U.
