ZTE Faces Potential Billion-Dollar Fine Amid U.S. Bribery Probe

ZTE Corp, a Chinese telecom giant, faces potential fines exceeding $1 billion from the U.S. government due to an investigation into alleged foreign bribery. This follows previous fines for export violations. The company's stock has reacted negatively, as negotiations with the Justice Department continue.

Chinese telecom giant ZTE Corp may face a hefty penalty of over $1 billion to settle long-standing allegations of foreign bribery. Sources indicate the U.S. government is advancing its investigation into ZTE's alleged violations of the Foreign Corrupt Practices Act in South American deals and other regions.

Following the news, ZTE's shares suffered significant losses, dropping more than 9% in Hong Kong and nearly 8% in Shenzhen. The company is in discussions with the U.S. Justice Department and maintains a stated commitment to combat corruption, yet declined comment on the ongoing matter.

A resolution, which could necessitate Chinese government approval, remains uncertain. This case is part of a broader pattern of U.S. scrutiny on foreign bribery within the telecom sector, with ZTE previously sanctioned for similar issues, impacting its financial stability.