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July 5, 2018, 8:59 a.m. EDT

China’s ZTE replaces execs in rush to comply with U.S. trade mandate

Company has to name a new board and senior executives as conditions for U.S. to lift ban

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By Dan Strumpf

AFP/Getty Images
The leadership changes are another indication that Shenzhen-based ZTE is racing to meet the terms of its lifesaving deal with the U.S. The deal faces a wave of opposition in Congress.

HONG KONG—ZTE Corp. has named a slate of new top executives, including a new chief executive, a person familiar with the matter said, as the Chinese telecom firm presses ahead with its U.S.-mandated leadership purge.

ZTE’s /zigman2/quotes/205386796/delayed ZTCOY -0.29%   new CEO is Xu Ziyang, the former head of the company’s business in Germany, the person said. The company also named a new chief financial officer, as well as a new chief technology officer and a new head of human resources, the person said.

The new leadership comes less than a week after ZTE’s board of directors resigned and shareholders voted to install a new eight-person board. ZTE is required to name a new board and senior executives as conditions for the U.S. government to lift a ban on purchasing American-made parts.

Read: Senate rejects Trump deal, votes to reinstate ban against ZTE

A formal announcement of the leadership changes is expected as soon as late Thursday, the person said. News of the new executives was earlier reported by the South China Morning Post. Xu didn’t immediately respond to a request for comment, and a ZTE spokeswoman declined to comment.

Read: Lawmakers think Google is too cozy with China’s Huawei, warn of spying risk

The reversal of the sales ban was announced last month by Commerce Secretary Wilbur Ross. The sales ban was imposed in April after the Commerce Department found that the Chinese company violated the terms of a settlement resolving sanctions-dodging sales of telecom gear to Iran and North Korea.

An expanded version of this report appears on WSJ.com .

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