Three Executives Step Down to Save ZTE from US Sanctions

Three senior executives of ZTE Corporation will be replaced as part of the Chinese telecommunications company's agreement with the U.S. in exchange for a temporarily relief from trade sanctions imposed in March.

According to The Wall Street Journal, ZTE's board of directors will be convening this week to rollout the replacement for three top officials who will leave their posts in a bid to reestablish its reputation in trading with the U.S.

Among the three bosses to be replaced include executive vice presidents Qiu Weizhao and Tian Wenguo, as well as ZTE's chief executive officer Shi Lirong, who had been in office since 2010.

According to a report from AFP posted in Yahoo News, the company's current chief technology officer Zhao Xianming will be taking over the top post after the board approves the three officials' resignations on Tuesday and Wednesday.

During the meeting, the board of directors is also expected to finalize the company's 2015 financial results after it was delayed due to the trade ban.

The trade restrictions took effect on March 7 after the U.S. Commerce Department found reason to believe that the Chinese company underwent trade with sanctioned Iran.

Immediately after it took effect, the sanctions imposed by the U.S. shook the telecommunications-equipment supplier's standing, particularly in the smartphone market where it garnered the fourth biggest market share last year.

Scrambling to bring the company back to its former glory, the three ZTE executives sacrificed their posts so that the effects of the sanction would ease up.

One of the biggest effects of the trade ban was the suspension of ZTE's shares in Hong Kong, which is expected to resume on Thursday, according to WSJ.

ZTE will also be pursuing its planned release of a new flagship device known as Axon 2 in the middle of May which was initially scheduled in April.