ZTE first disclosed last March that it was facing restrictions on doing business with US suppliers, with subsequent reports saying this was due to the Chinese company selling to Iranian customers, in violation of US sanctions against the country. The company was later granted a reprieve from some of the restrictions, after agreeing to cooperate with the US investigation and improve its compliance. The current reprieve runs until 27 February, after which US-based suppliers could find it difficult to export products to ZTE.
According to ZTE's latest statement, the company is in talks with the US Commerce Department, Department of Justice and Department of Treasury on a settlement, the outcome of which is expected to result in penalties (including but not limited to a fine and other relevant liabilities under US laws) imposed on the company. The outcome of the settlement talks still remains uncertain but will likely have a material impact on the financial conditions and operating results of the company, ZTE said.
