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ZTE tries to appease US

by on05 July 2018

Because there is a long history of appeasement working

China’s ZTE has named a set of new top executives, including a CEO and a CFO, to comply with its deal with the United States to get a supplier ban lifted.

The hope is that if it kowtows to US demands, then somehow it will win a get out of jail free card and be allowed to use US products in its smartphones ones more. Basically, if it can't do that the company is toast.  

For those who came in late, ZTE was banned for trading with Iran and then not being apologetic enough afterwards by disciplining the executives who conspired to evade US sanctions.

The US said part of ZTE's problem was institutional, so it wanted the heads of all its senior managers. 

The maker of smartphones and networking gear named the former head of its Germany business, Xu Ziyang, as its new chief executive officer, the Wall Street Journal said, citing a person familiar with the matter.

ZTE announced the departure of a senior executive, while a source who saw an internal memo told Reuters seven others were removed. As part of its settlement agreement reached in June with US authorities, ZTE had promised to radically overhaul its management.

The company also named a new chief technology officer and a new head of human resources, the WSJ said.


Last modified on 05 July 2018
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