ZTE accepts $900 million fine over US sanctions

ZTE accepts $900 million fine over US sanctions

Business news |
Telecommunications equipment and mobile phone company ZTE Corp. (Shenzhen, China) has agreed to pay an $892 million fine for contravening US export controls and sanctions in the past.
By Peter Clarke


This would have included the sale of equipment to such countries as Iran, North Korea and Cuba. ZTE has admitted guilt over sanctions-busting exports and agreed the settlement.

ZTE has agreed to a criminal and civil penalty of $892,360,064, and an additional penalty of $300 million that will be suspended for a seven-year term on the condition that the company complies with the requirements in the agreement including working with independent monitor.

“ZTE acknowledges the mistakes it made, takes responsibility for them, and remains committed to positive change in the company,” said Zhao Xianming, chairman and CEO of ZTE, in a statement. “We have learned many lessons from this experience and will continue on our path of becoming a model for export compliance and management excellence. We are committed to a new ZTE, compliant, healthy and trustworthy.”

Zhao was appointed chairman and CEO of ZTE in April 2016 with a mandate to reform the company.

According to reports Huawai, the world’s largest telecommunications equipment company, could be next to settle and the assertion of US sanctions is being used as a way of putting pressure on countries such North Korea and Iran.

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