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Record U.S. Plea Deal With Chinese Firm Comes With Big Hitch

  • U.S. announces record penalties for export-controls case
  • ZTE allegedly violated U.S. laws with technology sales to Iran
Bloomberg business news

ZTE Pleads Guilty to Violating U.S. Sanctions on Iran

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ZTE Corp. has agreed to pay as much as $1.2 billion for violating U.S. laws restricting the sale of American technology to Iran, ending a year of uncertainty about its ability to do business in the world’s biggest economy. Its shares surged.

The agreement with the U.S. government calls for the company to pay $892 million in fines and forfeitures and be subject to an additional $300 million in penalties if it violates the terms of the settlement. It’s the largest criminal fine for the Justice Department in an export control or sanctions case. The shares climbed as much as 7.4 percent in early Hong Kong trade, while its Shenzhen-listed stock was suspended.