China's ZTE chairman apologizes, pledges reboot after U.S. reprieve: source

HONG KONG (Reuters) - The chairman of China’s ZTE Corp (000063.SZ)(0763.HK) apologized to staff and customers on Friday after the technology firm agreed to pay a $1 billion fine to the United States to end a crippling ban that had brought the firm to its knees.

FILE PHOTO: ZTE Corp's Chairman Yin Yimin speaks at a news conference at ZTE's headquarters in Shenzhen, Guangdong province, China April 20, 2018. Picture taken April 20, 2018. Chen Wen/CNS via REUTERS

China’s No. 2 telecoms equipment maker also agreed on Thursday to overhaul its leadership in exchange for the lifting of a ban on buying parts from U.S. suppliers.

In a memo sent to staff, Chairman Yin Yimin apologized to clients, shareholders and business partners and said the firm would look to learn from its errors and hold those responsible accountable, a company source said.

“This issue reflects problems that exist with our firm’s compliance culture and at management level,” Yin wrote, according to the source, adding the incident was caused by the mistakes of a few ZTE leaders and employees.

Reporting by Sijia Jiang in HONG KONG; Writing by Adam Jourdan; Editing by Stephen Coates

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