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Hewlett-Packard Co. made changes to its top management at a subsidiary in China following a worker protest, highlighting the increa1221_HPsing difficulties U.S. companies face in doing business in the mainland amid suspicion by both countries that foreign-made equipment could be exploited for intelligence-gathering purposes.

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According to an internal email reviewed by The Wall Street Journal, H-P Chief Executive Meg Whitman told employees of Chinese network equipment subsidiary H3C Technologies Co. on Sunday that it would be promoting former H3C Chief Operating Officer Henry Xiang-Ying Cao as CEO. Mr. Cao will assume a post that had been held by Jessie Jing-Chuan Wu, who will become vice chairman.

Ms. Whitman has also offered workers long-term financial incentives, according to a separate email Friday seen by the Journal.

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