ZTE ordered to pay $1.2B for evading embargo

The United States government handed down a record-breaking sanctions fine this week against Chinese telecom company ZTE.

The company conspired to “evade” America’s embargo against Iran from 2010-2016, according to the U.S. Department of Commerce.

ZTE sold hardware and software that was made in the U.S. to supply telecom infrastructure in Iran. It also made nearly 300 shipments to North Korea in that timeframe. The company recently pled guilty, and was ordered to pay $1.2 billion dollars—“the largest criminal fine in a U.S. sanctions case to date,” The Verge reported.

Commerce secretary Wilbur Ross had this to say in a statement:

We are putting the world on notice: the games are over. Those who flout our economic sanctions and export control laws will not go unpunished — they will suffer the harshest of consequences.

ZTE’s chief executive, Zhao Xianming—who was appointed chief last April, after the last violations took place—issued the following short statement:

ZTE acknowledges the mistakes it made, takes responsibility for them and remains committed to positive change in the company.

 

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