Exclusive-China's ZTE may pay more than $1 billion to the US over foreign bribery allegations, sources say

Core Viewpoint - ZTE Corp is potentially facing a settlement exceeding $1 billion with the U.S. government to resolve longstanding allegations of foreign bribery related to telecom contracts [1][3]. Group 1: Allegations and Investigations - The U.S. Justice Department is investigating ZTE for violations of the Foreign Corrupt Practices Act (FCPA) in South America and other regions, which prohibits payments to foreign officials for business advantages [2]. - Allegations include that ZTE engaged in bribery to secure business deals, particularly in South America, with Venezuela being specifically mentioned [5][6]. - The most recent bribery-related act linked to ZTE occurred in 2018, indicating that FCPA cases can take years to surface [5]. Group 2: Financial Implications - ZTE has already paid approximately $2 billion in penalties to U.S. authorities for previous export violations during the Trump administration [1]. - The potential settlement amount could range from over $1 billion to possibly $2 billion or more, based on the alleged gains from corrupt contracts [3]. Group 3: Company Response and Compliance - ZTE has publicly stated a "zero-tolerance attitude towards any form of corruption or bribery" and has established an anti-bribery compliance system [4]. - The company did not respond to requests for comment regarding the ongoing investigations [4]. Group 4: Settlement Process - A settlement with the U.S. government would require approval from the Chinese government, and it remains unclear when a deal might be finalized [4].