ZTE hit with $1B+ fine for bribing officials abroad
Chinese tech giant ZTE is in trouble (again) with US authorities, this time for allegedly bribing foreign officials—including in South America and Venezuela—to land telecom contracts.
According to sources familiar with the matter, the US Department of Justice alleges these actions broke anti-corruption laws, adding to ZTE's long history of legal issues, including nearly $2 billion in past penalties for export violations involving Iran.
What's next for ZTE?
ZTE made about $1.16 billion in profit last year, but the new fines could wipe out a big chunk of that.
If they don't settle soon (the deal could top $2 billion), the US might bring back export bans—making it tough for ZTE to buy crucial American tech.
The case highlights how the US is cracking down on corporate bribery worldwide, especially in the telecom sector.