Menu
ZTE pays US$892M settlement to US over illegal sales to Iran

ZTE pays US$892M settlement to US over illegal sales to Iran

US investigators had accused the Chinese company of violating export controls

IDG

IDG

Chinese smartphone maker ZTE has agreed to pay US$892 million to the U.S. government for illegally selling networking technology to Iran.

ZTE entered a guilty plea over the charges, which include violating export controls meant to keep sensitive U.S. technology away from the Iranian government, the U.S Department of Justice said on Tuesday.

"They (ZTE) lied to federal investigators and even deceived their own counsel and internal investigators about their illegal acts," Attorney General Jeff Sessions said in a statement.

ZTE didn’t immediately respond to a request for comments. But the whole matter has tarred the Chinese company's reputation and risked denying it access to U.S. tech suppliers, such as Qualcomm and Intel.

Although ZTE is based in China, the company incorporated U.S.-developed technology into its networking products and then sold them to Iran. From 2010 to 2016, ZTE shipped about $32 million worth of U.S.-developed products to the country, either directly or through a third party, the Justice Department said.

The Chinese company had been winning contracts to build Iranian cellular and landline networks and was allegedly trying to hide the illegal technology shipments. But in 2012, Reuters revealed that ZTE was selling surveillance equipment capable of spying on mobile and internet communications to Iran.

In 2012, the U.S. began probing ZTE over the illegal sales. During that investigation, it found that ZTE was fully aware the company was violating U.S. law, but senior executives at the Chinese company still approved the scheme.

Even when the company was caught selling the technology, the Chinese company still resumed the illegal shipments to Iran, the Justice Department said.

In response, the U.S. placed trade restrictions on the Chinese company that barred U.S. firms from supplying ZTE with technology equipment, although temporary reprieves were granted.

As part of Tuesday's plea agreement, the Chinese company will continue to cooperate with U.S. authorities in investigations of any other violations of U.S. export control laws.

An independent group will also monitor ZTE’s compliance with U.S. export control laws for a probationary three-year period.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags mobile phonesZTE

Featured

Slideshows

Meet the leading female front runners of the Kiwi channel

Meet the leading female front runners of the Kiwi channel

Reseller News honoured the leading female front runners of the New Zealand channel at the 2018 Women in ICT Awards (WIICTA) in Auckland. The awards honoured standout individuals across seven categories, spanning Entrepreneur; Innovation; Rising Star; Shining Star; Community; Technical and Achievement.

Meet the leading female front runners of the Kiwi channel
Meet the top performing customer-centric Microsoft channel partners

Meet the top performing customer-centric Microsoft channel partners

Microsoft honoured leading partners across the channel following a year of customer innovation and market growth in New Zealand. The 2018 Microsoft Partner Awards recognised excellence within the context of the end-user, spanning a host of emerging and established providers.

Meet the top performing customer-centric Microsoft channel partners
Reseller News launches new-look Awards at 2018 Judges’ Lunch

Reseller News launches new-look Awards at 2018 Judges’ Lunch

Introducing the Reseller News Innovation Awards, launched to the channel at the 2018 Judges’ Lunch in Auckland. With more than 70 judges now part of the voting panel, the new-look awards will reflect the changing dynamics of the channel, recognising excellence across customer value and innovation - spanning start-ups, partners, distributors and vendors.

Reseller News launches new-look Awards at 2018 Judges’ Lunch
Show Comments