Chinese Company Accepts Allegations of Violating Iran Sanctions; Will Pay $900 Million Fine

In an agreement between a major Chinese company and U.S. government entities regarding a fine for alleged violations of Iran sanctions, the company has accepted the charges against it. ZTE will pay approximately $900 million for the 'illegal transfer' of $32 million worth of American technology to Iran. The Chinese company, one of the largest telecommunications equipment manufacturers, announced on March 8 that it had agreed to pay $892 million to resolve a case opened against it in the U.S. According to Reuters, this agreement was made with the U.S. Departments of Commerce, Justice, and Treasury; none of the departments commented on the details of the agreement. Initial investigations into the Chinese company date back to 2012 when ZTE contracted to transfer millions of dollars' worth of hardware and software made by American companies to Iranian parties. On March 23, the large Chinese company officially accepted three charges against it: conspiracy to export U.S.-made technology to Iran without obtaining permission from the U.S. government, obstruction of justice, and making false statements. Reports indicate that a five-year investigation by U.S. authorities has shown that ZTE deliberately engaged in purchasing American hardware, combining it with its own, and illegally transferring it to Iran. Last month, the company stated in a release that it 'acknowledges its mistakes, accepts responsibility, and remains committed to positive changes within the company.' ZTE is an annual customer of nearly $2.6 billion worth of products made by American companies, including Microsoft, Intel, and Qualcomm. ZTE (Chinese: Zhongxing Telecommunication Equipment Corporation) is one of the top five smartphone manufacturers in China; its main operational segment includes operator services and telecommunications equipment and terminals.