ZTE Faces $1 Billion Bribery Settlement with U.S. Justice Department

Chinese telecoms giant ZTE Corp may settle U.S. foreign bribery charges for over $1 billion. Already penalized $2 billion for past violations, ZTE is facing fresh FCPA charges, primarily in South America. A new settlement, if reached, requires China's approval amid ongoing Justice Department probes.

Chinese telecom giant ZTE Corp is reportedly nearing a settlement with the U.S. government that could exceed $1 billion to resolve longstanding allegations of foreign bribery, according to sources familiar with the situation. The company's stocks reacted negatively on latest developments.

U.S. investigations into ZTE's practices are centered around alleged violations of the Foreign Corrupt Practices Act (FCPA), particularly involving telecom contracts in South America and other regions. These legal challenges follow ZTE's history of compliance issues, including a recent $2 billion penalty for export violations.

As ZTE continues discussions with the U.S. Justice Department, a resolution may hinge on approval from the Chinese government, potentially complicating the scenario. The announcement has spurred significant interest in the global business community, affecting market behavior and drawing attention to cross-border legal enforcement.

(With inputs from agencies.)