ZTE’s board is expected to replace three of the company’s top executives in the wake of an investigation that led the U.S. Department of Commerce to levy trade restrictions against the Chinese smartphone maker.
According to a report from the Wall Street Journal, ZTE Chief Executive Shi Lirong and executive vice presidents Tian Wenguo and Qiu Weizhao will resign their posts pending approval from the board.
ZTE’s Chief Technology Officer Zhao Xianming will reportedly step into the role of CEO and chairman, the report said.
The Wall Street Journal said the changes are expected to be discussed and approved on Tuesday and Wednesday of this week. The board is also expected to approve the company’s 2015 financial results this week following a delay in the wake of the sanctions.
In early March, the U.S. Commerce Department slapped ZTE with export restrictions amid allegations the company violated U.S. export controls on Iran. According to U.S. officials, ZTE allegedly violated export-controls by signing contracts in which it agreed to ship several million dollars’ worth of hardware and software from a well-known American tech companies – including Microsoft, IBM, Oracle and Dell – to Iranian telecommunications carrier Telecommunication Co of Iran (TCI).
The decision reportedly angered Chinese officials, who appealed the restrictions. ZTE also said it was in constant communication with U.S. officials to straighten out the matter.
Near the end of March, U.S. Commerce Department officials announced the trade controls would temporarily be lifted based on commitments ZTE had made to the U.S. government.
Filed Under: Industry regulations
