The Chinese telecommunications company ZTE has agreed to pay $892 million in fines and penalties after pleading guilty to violating U.S. sanctions and export control laws.
ZTE covertly exported equipment to fulfill Iranian contracts worth hundreds of millions of dollars, while also shipping telecom equipment to the Democratic People’s Republic of Korea.
CGTN Daniel Ryntjes reports.
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US fines China’s ZTE near $900M on Iran salesZTE covertly exported equipment to fulfill Iranian contracts worth hundreds of millions of dollars, while also shipping telecom equipment to the Democratic People's Republic of Korea. CGTN Daniel Ryntjes reports.
U.S. Commerce Secretary Wilbur Ross announced the largest penalty for sanctions and export control violations in history, thanks to the culmination of a five-year multi-agency investigation.
“With this action, we are putting the world on notice – improper trade games are over with. Those who flout our economic sanctions, export control laws and any other trade regimes will not go unpunished. They will suffer the harshest of consequences,” Ross said.
ZTE admitted violations took place between 2010 and 2016 and that it lied to U.S. agents while attempting a cover-up of other activities when U.S. investigations began in 2012. ZTE also admitted to exporting 283 shipments of dual-use telecom equipment to the DPRK.
It will now enter into a seven-year probationary period and will pay an additional $300 million if it violates the terms.
Chairman and Chief Executive Zhao Xianming said in a statement that ZTE “acknowledges the mistakes it made, takes responsibility for them, and remains committed to positive change in the company.”