A logo sits illuminated outside the ZTE pavilion on the opening day of the World Mobile Congress at the Fira Gran Via Complex on February 22, 2016 in Barcelona, Spain. (Photo : Getty Images/David Ramos)
ZTE Corp. declared no changes in its global strategy despite the reshuffle among their ranks just weeks after the U.S. handed down trade sanctions on the company.
This week, the Chinese telecom company's chairman and president Shi Lirong, who led the company's expansion since he came to office in 2010, has officially stepped down from office along with other senior executives.
According to ZTE's statement cited China Daily, he will be replaced by the firm's chief technology officer, Zhao Xianming, who will be joined by seven new senior executives.
Capacity Media noticed how the company did not appoint any new chief executive officer, leaving some to question if Shi maintains that post.
But ZTE spokesperson Dai Shu denied this speculation, saying, "From ZTE's perspective, president equals CEO."
While the company denied any link to the two events, the reshuffling of top executives is seen as part of ZTE's cooperation in "resolving the matter" of the U.S. trade sanctions imposed on the company after it allegedly underwent prohibited exportation of materials to Iran.
Talking about the new line of bosses, ZTE said: "The experienced, energetic and professional team is committed to driving technological innovations and expanding ZTE's global business developments. The new leadership will strive to comply with the highest business standards."
Among the newly appointed executives are ZTE's Chief Financial Officer Wei Zaisheng; Fan Qingfeng, who will oversee legal matters and public relations; and Zeng Xuezhong, who is in charge of the terminals division and handset business.
Many believe that ZTE's global shares and overall performance was shaken since the U.S. trade ban was applied to them, particularly after the company changed leadership.
However, Counterpoint Technology Market Research director James Yan believes that the company made the right decision in changing their ranks.
"The core management team in the U.S. is intact, which is a good thing for ZTE because they still have the know-how to handle everyday operations," Yan explained.
Furthermore, analyst Milly Xiang of the International Data Corp. explained that the reshuffling will have little effect on the company's global expansion.
"I don't think [the reshuffle] will slow down ZTE's global expansion, especially when the company is seeking to outshine its competitors by migrating to post-4G telecom technology and the Internet of Things market," Xiang stated.
