China’s ZTE may pay more than $L.3b to US over bribery allegations

Chinese telecommunications equipment maker ZTE may pay more than US$1 billion (S$1.3 billion) to the US government to resolve years-old allegations of foreign bribery, according to two people familiar with the matter.

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ZTE, which had paid about US$2 billion in penalties to the US authorities over export violations during President Donald Trump’s first term, has for years faced probes around the world into alleged bribes to secure telecoms contracts.

In 2025, the Justice Department moved forward with a US investigation into ZTE for allegedly violating the Foreign Corrupt Practices Act (FCPA) in South America and other regions, the sources said. The Act prohibits payments or giving anything of value to foreign officials to obtain business.

US officials are working on a resolution that could see ZTE pay more than US$1billion, the sources said, and possibly US$2 billion or more, one said, based in part on alleged gains from corrupt contracts.

On Dec ll, ZTE’s Hong Kong-listed shares tumbled more than 9 per cent, while its Shenzhen shares fell by almost 8 per cent. Ina statement to the Hong Kong stock exchange on Dec Wl, ZTE said it was engaged in “ongoing communication” with the Justice Department regarding the investigation.

ZTE did not respond to requests for comment before publication.