ZTE drops Communist Party chief to reverse US import ban
ZTE has sidelined at least three senior executives since the US imposed an export ban that has forced the company to shut down major operations and made it a focus of China-US trade talks
A demoted executive at ZTE has been replaced as Communist Party secretary at the firm, according to people familiar with the matter, the latest in a series of personnel changes as the Chinese telecommunications company seeks to persuade the US to lift an export ban that has forced it to shut down major operations.
Fan Qingfeng was an executive vice-president at ZTE from March 2008 until January 2017, after which he was listed as a lower-ranked senior vice-president, according to a review of the company’s annual reports. Between 2008 and 2010, Fan was in charge of logistics and oversaw sales between 2010 and 2012.
ZTE ‘may be fined US$1.7 billion by Trump administration’
China’s No. 2 telecommunications equipment maker has been crippled by a ban imposed in April on buying US components for seven years for breaking an agreement reached after it was caught illegally shipping goods to Iran and North Korea. The Trump administration may soon claim as much as US$1.7 billion in penalties from ZTE, as it looks to punish and tighten control over the Chinese telecommunications company before allowing it back into business, Reuters reported at the weekend, citing people familiar with the matter.
It is not clear whether Fan’s replacement as party secretary is linked to his executive roles overseeing sales or other functions. Fan Qingfeng could not be reached for comment. ZTE declined to comment.
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Under China’s company law, firms should set up Communist Party branches according to the requirements of the party charter, which demands grass-roots cells be set up – including in companies and schools – if there are at least three party members in an organisation.