Embattled Chinese telecommunications behemoth ZTE has announced the appointment of its new chairman as part of its on-going overhaul of its management structures.
ZTE is desperately vying to get back on track after a recent import ban by the US Commerce Department had the telecommunications vendor teetering on the brink of collapse. In an official statement released by ZTE it officially confirmed the appointments of eight new board members, including Li Zixue as its new chairman after concluding nominations in mid-June.
The former board which consisted of 14 members resigned in order to make way for the downsized board. The move complies with the strict terms and conditions set by the US following a settlement with ZTE to lift a seven year ban on US companies selling equipment to the vendor. However, the decision by the US House of Representatives to overrule that decision means that ZTE remains in a precarious position financially.
Following the ban, implemented in April, ZTE was forced to suspend its operations. Along with committing to changes to its management and compliance procedures, ZTE also agreed to pay a fine of $1 billion and place an additional $400 million in escrow.
The new board consists of five non-independent directors: Li Zixue; Li Buqing; Gu Junying; Zhu Weimin and Fang Rong.
Three independent directors have also been appointed: Cai Manli, Yuming Bao and Gordon Ng. Bloomberg pointed out Li Zixue is the deputy director of Xi’an Microelectronics Technology Institute, a research unit of the China Aerospace Science and Technology Corporation and a key technology provider to the nation’s space and defence programmes. It was also an early investor in ZTE.