ZTE appoints new chairman in management reshuffle amid talks with US to lift curbs

Chinese telecommunications powerhouse ZTE has named veteran executive Zhao Xianming as its new chairman and president in a sweeping senior management revamp, which could help repair the company’s damaged reputation with the United States government.

The management reshuffle saw Shi Lirong, who had been ZTE’s president since March 2010, accept a non-executive director role in the company, while founder Hou Weigui retired from the chairman’s post that he has held since February 2004.

Executive vice-presidents Tian Wenguo and Qui Weizhao have also stepped down, paving the way for the promotion of other executives to senior positions, according to the company’s filing with the Hong Kong stock exchange on Tuesday.

ZTE, China’s largest listed telecommunications equipment manufacturer, did not comment on the current state of discussions with the US Department of Commerce, which slapped the firm with export restrictions last month over its alleged violation of longstanding trade sanctions on Iran.

That issue forced the company to request the suspension of trading of ZTE’s shares in Hong Kong and delay announcement of its financial results for last year. Its earnings are expected to be announced on Wednesday.