ZTE names Li Zixue its new chairman, elects new board

Nieuws Algemeen China 2 JUL 2018
ZTE names Li Zixue its new chairman, elects new board

ZTE has appointed Li Zixue its new chairman. Shareholders voted in the new executive during their AGM on 29 June. ZTE’s former board of 14 directors resigned and the company elected a new board of eight members. 

Li Zixue is the deputy director of the Xi’an Microelectronics Technology Institute, a research unit of the China Aerospace Science and Technology, Bloomberg reports. The firm became the earliest investor in ZTE when then-employee Hou Weigui decided to set up ZTE in Shenzhen in 1985. Tian Dongfang, a former chief also at the Xi’an Microelectronics Technology Institute, was earlier named party secretary. 

The new board and chairman comes as ZTE tries to comply with an agreement with the US and so end the seven-year export ban imposed on it by the US government. ZTE’s lost almost USD 11 billion of market value since its shares resumed trading on 13 June. According to Bloomberg's market sources, the company is facing at least USD 3 billion in total losses from the months-long moratorium, which cut off the flow of chips and other components it needed to make its networking gear and smartphones.

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