ZTE still without new management team as US export ban partially lifted
ZTE is moving quickly to meet settlement terms after facing huge losses from shutdown in the wake of US ban
The temporary lifting of parts of a US export ban on ZTE is unlikely to yield a substantial business recovery any time soon, as the Shenzhen-based company is still in the process of laying off the previous management team, leaving it with no head to guide operations.
ZTE is on track to complete the dismissal of the previous senior management team by Thursday, including all executive vice-presidents (EVPs) and those senior vice-presidents (SVPs) who have not been granted exemptions from the terms of a settlement to lift the US export ban, according to people familiar with the situation.
The company has also terminated the contracts of at least seven employees on the 35-name list of people involved in previous illegal sales to Iran and North Korea, including three vice presidents from the legal affairs department, financial monitoring department and supply chain planning department, as well as four directors from the compliance management department, information security management department, international financing department and Africa sales office, said the people, who asked not to be named as the information is not public.
As part of a settlement with the US Commerce Department, ZTE needs to replace the entire board and senior executives as well as anyone involved in the Iran violations within 30 days from June 7. ZTE declined to comment on its plans for a resumption of its operations on Wednesday.
The Trump administration on Tuesday temporarily lifted part of a ban it had placed on ZTE Corp, allowing the Chinese telecoms giant to resume some of its business activities while the US Congress continues to weigh penalties on the company.