New executives named at ZTE to comply with US request: report

New executives named at ZTE to comply with US request: report
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Chinese telecommunications company ZTE has reportedly named a new chief executive and other leaders as it seeks to comply with U.S.-imposed requirements to get back in business in the country.

The Wall Street Journal reported Thursday that Xu Ziyang, who previously oversaw ZTE’s business in Germany, will serve as CEO. The company’s installment of new leadership comes just a few days after its previous board of directors resigned. 

The Journal reported that the swift change indicates ZTE is hurrying to meet requirements laid out by the U.S. Commerce Department as part of a deal to allow the Chinese phone-maker to do business in the United States again.

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Bloomberg reported Tuesday that the Trump administration will allow ZTE to temporarily resume some of its business operations amid the rollback of U.S. restrictions on the company.

The new authorization from the Commerce Department will be in effect from July 2 to Aug. 1according to a document obtained by Bloomberg. The company told the outlet that it will be in compliance with U.S. demands by the end of this period.

The Commerce Department announced last month that it would lift penalties on ZTE, which had previously faced the U.S. sanctions for selling materials to Iran and North Korea.

As part of the agreement, the Commerce Department will impose a $1 billion penalty against ZTE, and a U.S.-selected compliance team will be embedded in the firm for 10 years.

The move came after President TrumpDonald John TrumpTrump calls for Republicans to be 'united' on abortion Tlaib calls on Amash to join impeachment resolution Facebook temporarily suspended conservative commentator Candace Owens MORE offered assistance to Chinese President Xi Jinping to revive the dying company. 

However, the assistance offer has drawn widespread criticism from lawmakers in both parties, who warn that ZTE poses a national security threat.

The revival of ZTE comes as China and the U.S. continue to spar over larger trade issues, raising concerns of a looming global trade war.

President Trump announced earlier this year that the U.S. would impose a 25 percent tariff on $50 billion in Chinese goods. China responded with similar tariffs on U.S. goods, which prompted Trump to order additional levies on Chinese products.