Chinese telecom equipment maker ZTE Corp could owe more than $1 billion to the US government over alleged foreign bribery, according to sources familiar with the matter.
The potential settlement stems from long-running investigations into the company’s activities in South America and other regions.
ZTE has previously faced major penalties, paying roughly $2 billion to US authorities over export violations during former President Donald Trump’s administration.
The new probe, led by the US Justice Department, alleges that ZTE violated the Foreign Corrupt Practices Act (FCPA), which prohibits payments or anything of value to foreign officials to gain business advantages.
Reuters reports that the US is working toward a resolution that could see ZTE paying more than $1 billion—or possibly $2 billion or more—based in part on gains from allegedly corrupt contracts.
On Thursday, ZTE shares fell sharply, dropping over 9% in Hong Kong and nearly 8% in Shenzhen.
In a statement to the Hong Kong stock exchange, ZTE said it is engaged in “ongoing communication” with the Justice Department.
The company emphasized its commitment to compliance and a zero-tolerance policy toward corruption.
“The Company consistently commits to comprehensively strengthening its compliance system and building an industry-leading compliance framework,” it added.
The Chinese-based telecommunications giant known as ZTE Corp is said to be discussing the settlement of paying larger than one billion dollars to the U.S government to end a years long investigation into the alleged foreign bribing. The possible settlement counters claims that… pic.twitter.com/hwCgp4mwnP
— TechBeast (@TechBeast__) December 11, 2025
Alleged ZTE Bribery Dates Back to 2018
The timing of any settlement remains uncertain, as it would also require approval from the Chinese government.
Liu Pengyu, a spokesperson for China’s embassy in Washington, said he was unaware of the specifics but noted, “China has always required Chinese companies to operate legally abroad and abide by local laws and regulations.”
FCPA cases often take years to resolve, and sources said the alleged bribery acts involving ZTE date back to 2018, with potential criminal conspiracy charges.
Venezuela was specifically mentioned as a location where ZTE may have engaged in corrupt practices to secure contracts.
ZTE’s prior US export violations complicate the situation. In 2017, the company pleaded guilty to illegally exporting American goods to Iran, paying an $892 million penalty, US News reported.
The following year, it faced accusations of misleading authorities about employee discipline related to those violations, resulting in a US export ban.
After additional penalties and negotiations during Trump’s trade talks with China, the ban was lifted.
The company earned $1.16 billion in profit last year, but a hefty FCPA settlement could strain its finances.
Originally published on vcpost.com