ISLAMABAD ( MEDIA REPORT )
ZTE will reportedly announce a new management team tomorrow, including a replacement for chief executive Shi Lirong, following its well-publicised woes in the US for violating trade rules.
The Wall Street Journal (WSJ) reported ZTE will replace three of its most senior executives; CEO Lirong, and executive vice presidents Tian Wenguo and Qiu Zeizhao, with current CTO Zhao Xianming set to be appointed as CEO and chairman.
WSJ claimed the changes are part of the company’s attempts to rebuild its reputation after being slammed with tough export restrictions for allegedly breaching controls on the export of US technology to Iran, following an investigation dating back to 2012.
The shake-up is also in line with a recent agreement between the US Department of Commerce and the Chinese vendor which could temporarily see the easing of sanctions until the end of June, as long as executives involved in the alleged wrongdoing are removed from management roles, according to the publication.
Both Wenguo and Zeizhao were named in an internal document from 2011 obtained by the US government, which claimed they were in charge of ZTE’s plans to evade US export rules.
ZTE spokesman David Dai Shu told Reuters, however, that management reshuffles at the company occur every three years, and the changes are in line with its regular schedule.
Notably, Lirong has been chief executive since 2010.
Over the next two days, ZTE’s board will discuss and approve the management changes, and announce its 2015 annual results, which have been repeatedly delayed amid the US trade sanctions row, according to reports.