ZTE controversies

Foreign Corrupt Practices Act investigation

The U.S. Department of Justice was reported to have opened an investigation into possible violations of the Foreign Corrupt Practices Act involving alleged bribery connected with overseas telecommunications contracts.

FCC national-security designation

The FCC classified ZTE as a national-security threat, citing concerns about potential Chinese government influence and risks to communications networks.

U.S. Justice Department investigates alleged ZTE bribery

Investigation

In March 2020, reports citing two people familiar with the matter said the U.S. Justice Department was investigating whether ZTE bribed foreign officials to gain business advantages globally. The report did not identify which countries' officials were under investigation. The accounts described an inquiry into alleged bribery tied to the company's international business dealings; no further details on the scope, targets, or status of the investigation were provided in the source.

Fractus and ZTE settle patent dispute

Settlement

Fractus announced that its patent dispute with ZTE had been settled under an agreement reached by the parties, with the terms of the agreement kept confidential. According to the source, Fractus had sued ZTE in August 2017 over alleged infringement of claims in seven patents. The announcement concerns the resolution of that dispute through the parties' agreement; no further details of the settlement were disclosed.

ZTE clarifies reports about chip production

Company response

In June 2020, ZTE issued a clarification regarding reports about chip production. The company stated that it focuses on communications chip design and does not possess chip-manufacturing capability. According to the clarification, reports concerning 7nm mass production and the introduction of 5nm chips were misread and were inconsistent with the facts. The statement was issued to correct the interpretation of those reports.

ZTE issued a clarification saying it focuses on communications chip design and does not have chip-manufacturing capability, after reports about 7nm mass production and 5nm chip introduction were said to have been misread and inconsistent with the facts.

False compliance statements and export denial order

U.S. authorities concluded that ZTE had misrepresented how it disciplined employees involved in the earlier sanctions violations, resulting in a seven-year export restriction that was later settled.

Guilty plea in case for violating U.S. Iran sanctions and obstruction of justice

In March 2017, ZTE pleaded guilty in the United States to violating Iran sanctions, obstruction of justice, and major false statements. The criminal fine and forfeiture were approximately US$430.4 million; together with settlements with the Department of Commerce and the Department of the Treasury, total payments were approximately US$892.36 million, with an additional US$300 million fine suspended.

Iran surveillance-system controversy

Reports said ZTE supplied systems to Iran’s state-controlled telecommunications company that could support interception and monitoring of communications.

Telenor procurement conduct suspension

Norwegian operator Telenor temporarily barred ZTE from tenders and new business opportunities after an alleged breach of its procurement code of conduct.