ZTE Corp pleads guilty in US in Iran technology sanctions case
Chinese telecom equipment maker ZTE Corp on Wednesday ( US time) pleaded guilty in US federal court in Texas for conspiring to violate US sanctions by illegally shipping US goods and technology to Iran.
The guilty plea was part of an agreement the company reached earlier this month with US authorities that also called for nearly $ 900 million in fines and other penalties.
ZTE posted revenue of 101.23 billion yuan ($ 14.70 billion) in 2016, up 1.04 percent year- onyear, according to its annual report on Thursday.
US District Judge Ed Kinkeade in Dallas accepted the company’s plea to three charges: conspiring to export US- made items to Iran without a license, obstructing justice, and making a material false statement.
Shenzhen- based ZTE has a US subsidiary in Richardson, Texas. A five- year investigation found ZTE conspired to evade US embargoes by buying US components, incorporating them into ZTE equipment and illegally shipping to Iran.
ZTE agreed to the guilty plea after the US Department of Commerce took actions that threatened to cut off the gear maker’s global supply chain.
The investigation followed reports by Reuters in 2012 that ZTE had signed contracts to ship millions of dollars’ worth of hardware and software from some of the best- known US technology companies to Iran’s largest telecoms carrier.
As part of the deal, ZTE will be under probation for three years and agreed to cooperate with authorities in any investigation of the company or third parties.
The judge appointed a former Texas judge to monitor ZTE’s compliance. The company settled with the US Department of Justice, the US Department of
Treasury and the Commerce Department in early March.
In addition to $ 892 million it agreed to pay in fines and penalties, an additional penalty of $ 300 million could be imposed if it does not comply with its agreement with the Commerce Department in the next seven years.
One of the world’s biggest telecommunications gear makers, ZTE purchases some $ 2.6 billion worth of components a year from US companies, according to a company spokesman. Qualcomm, Microsoft and Intel are among its suppliers.