Chinese telecommunications giant ZTE is reportedly set to pay the U.S. government approximately $1 billion to settle allegations of bribery abroad. According to a new report from Reuters, the U.S. Department of Justice (DOJ) is conducting an ongoing investigation into ZTE’s violations of the Foreign Corrupt Practices Act (FCPA) in various regions.
FCPA Investigation and Venezuela Connection
ZTE faces numerous bribery charges under the FCPA for allegedly bribing officials in several regions to secure telecommunications contracts. According to sources familiar with the DOJ’s ongoing investigation, the most recent bribery allegations date back to 2018 and involve suspicious telecommunications deals, particularly in South America, specifically Venezuela.

In an official statement to the Hong Kong Stock Exchange, ZTE confirmed it is in “ongoing communication” with the U.S. Department of Justice. Because it is a partially state-owned company, any agreement reached with the US government would first require approval from the Chinese government.
ZTE’s history of restrictions and bans imposed by the US can be summarized as follows:
- 2017: ZTE admitted to illegally exporting US technology to Iran and North Korea, resulting in a record fine of $1.2 billion.
- 2018: The US Department of Commerce banned US companies from exporting components such as chips and software to ZTE for seven years. The company agreed to pay a $1 billion fine and deposit an additional $400 million into an escrow account to lift the ban (sources indicated the total payment was $1.4 billion).
- 2020: The US Federal Communications Commission (FCC) designated ZTE as a national security threat, further restricting its access to US networks and blocking federal subsidies to carriers using ZTE network equipment. 2022: The FCC banned all imports of network equipment from ZTE and Huawei. Several European Union member states later followed suit.
If the new $1 billion settlement agreement is finalized, it will be the second largest fine ZTE has paid to the US government in recent years and could mark a turning point for the company’s future global operations.

