ZTE Corp, China’s largest listed telecommunications equipment supplier, has appointed a new chairman, just days after it agreed to pay a record fine to the United States government for violating long-standing trade sanctions on Iran and North Korea.
Shenzhen-based ZTE named veteran company executive Yin Yimin as its new chairman to replace Zhao Xianming, who resigned on Tuesday to focus on day-to-day operations in his other role as president.
In its regulatory filing after the market closed, the company said that Zhao gave up his chairman’s title “to enhance corporate governance” by separating that position from the chief executive’s role.
It pointed out that Zhao “has no disagreement with the [ZTE] board and there is no other matter required to be brought to the attention of the shareholders”.
“Provided that it does not make any further mistakes, ZTE is now in a position where it can once again look to the US market for expansion,” Paul Haswell, a partner at international law firm Pinsent Masons, told the South China Morning Post.
Zhao was appointed as ZTE’s chairman and president in April last year as part of a sweeping senior management revamp, after the company was slapped with export restrictions by the US government.