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Report: ZTE reassigns 2 top executives as talks continue on US export ban

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Report: ZTE reassigns 2 top executives as talks continue on US export ban

ZTE Corp. has removed two senior executives from their roles as the U.S. and China continue negotiations on lifting the crippling seven-year export ban imposed on the telecommunications gear maker, the South China Morning Post reported, citing people familiar with the matter.

Executive Vice-President and Chief Technology Officer Xu Huijun and Huang Dabin, who oversees corporate operations, are no longer performing their usual responsibilities at ZTE, the people said.

According to the report, Xu was the second-highest ranking executive in the ZTE management team after CEO Zhao Xianming. Huang was responsible for operational management and reported to Zhao directly before being removed from his post in March, the people added.

U.S. President Donald Trump tweeted May 25 that he will let ZTE reopen in the U.S. if it pays a $1.3 billion fine and agrees to management and board changes, along with other restrictions.

ZTE replaced its chief compliance officer, Cheng Gang, a month before it was hit by U.S. export restrictions in April. The U.S. said the company had broken a settlement agreement by repeatedly making false statements.

The company ceased its major operating activities due to the trade restrictions preventing it from securing key components for U.S. firms. The ban cost the company estimated losses of at least 20 billion yuan.

As of May 30, US$1 was equivalent to 6.42 Chinese yuan.