ZTE is expected to pay over $1 billion to the U.S. government over overseas bribery allegations

Alexander · 发表于 2025-12-12 04:16:10

People familiar with the matter revealed that Chinese telecommunications equipment manufacturer ZTE is set to pay more than $1 billion (SGD 1.293 billion) to the U.S. government to resolve long-standing allegations of overseas bribery.

Reuters reported the news on Wednesday, December 10, citing two sources close to the matter.

According to reports, ZTE already paid a $2 billion fine to the U.S. government during former U.S. President Donald Trump’s first term for violating export controls. In recent years, ZTE has faced investigations by law enforcement agencies around the world over alleged overseas bribery to secure telecommunications equipment contracts.

Sources indicated that the U.S. Department of Justice (DOJ) has stepped up its probe this year, accusing ZTE of violating the U.S. Foreign Corrupt Practices Act (FCPA) in South America and other regions.

The anti-bribery provisions of the FCPA criminalize the act of U.S. individuals or issuers of securities paying foreign government officials to obtain or retain business, or to secure business for any other person. Since 1998, these anti-bribery provisions have also applied to foreign companies or individuals if they take actions in the United States that facilitate a bribe.

Sources stated that U.S. officials are finalizing a resolution under which ZTE may be required to pay over $1 billion in fines, based on the benefits derived from contracts obtained through bribery. One of the sources noted that the fine could reach $2 billion or more. This marks the first time Reuters has reported on the matter.

A spokesperson for the U.S. Department of Justice declined to comment. It remains unclear whether ZTE has reached an agreement with the U.S. government. Sources said that approval from the Chinese government is required before any deal with the U.S. can be finalized.

Liu Pengyu, spokesperson for the Chinese Embassy in Washington, stated that he has no knowledge of the specific details regarding the ZTE case, adding that "China has always required Chinese enterprises to operate legally overseas and abide by local laws and regulations."

Separately, according to a report by National Business Daily, ZTE issued an announcement on Thursday, December 11, stating that the company is aware of recent media reports regarding investigations into its compliance with the U.S. Foreign Corrupt Practices Act. The company is in communication with the U.S. Department of Justice on relevant matters and will resolutely safeguard its legitimate rights and interests through legal means.

ZTE emphasized that it has always been committed to comprehensively strengthening the construction of its compliance system and striving to build an industry-leading compliance framework. The company opposes all forms of corruption and maintains a zero-tolerance stance toward any individuals potentially involved. At present, the company’s production and operations are proceeding as normal.

In an announcement issued to employees, shareholders and business partners last August, ZTE stated that it adopts a zero-tolerance policy toward all forms of corruption and bribery, and has established an anti-corruption supervision and compliance management system.

[通讯] ZTE is expected to pay over $1 billion to the U.S. government over overseas bribery allegations

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