ZTE’s $1.2bn sanctions settlement ends year of US limbo
Shares in the telecoms company soared after it agreed to pay for violating US laws restricting the sale of US technology to Iran
Washington — ZTE Corporation has agreed to pay as much as $1.2bn for violating US laws restricting the sale of US 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 US government calls for the company to pay $892m in fines and forfeitures and be subject to an additional $300m in penalties if it violates the terms of the settlement. It is the largest criminal fine for the Justice Department in an export control or sanctions case. The shares climbed as much as 7.4% in early Hong Kong trade, while its Shenzhen-listed stock was suspended. The Commerce Department blocked US exports to ZTE in March 2016 over allegations that the company resold goods to Iran, only to suspend that ban several times after both sides opened negotiations. The China-based company sells smartphones as well as networking gear throughout Europe and Asia and buys components from US companies, including Qualcomm ...
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