Catenaa, Wednesday, December 17, 2025- ZTE is again under scrutiny from US authorities, with the Justice Department investigating alleged violations of anti-corruption laws that could expose the Chinese telecoms equipment maker to a multi-billion-dollar penalty, according to a Reuters report citing unnamed sources.

The probe centers on suspected breaches of the Foreign Corrupt Practices Act linked to contract awards in South America, with Venezuela identified by one source as a focal point.

Reuters reported that any settlement could reach $2 billion or more, based on alleged gains tied to the contracts.

ZTE acknowledged the report in a filing to the Hong Kong stock exchange, saying it is in contact with the Justice Department regarding the matter and intends to defend its legal position.

The company said it maintains internal compliance measures and opposes corrupt conduct.

The investigation revives long-standing concerns over ZTE’s dealings with US regulators.

The company has already paid more than $2 billion in past settlements related to trade and compliance violations.

In 2017, it agreed to penalties after admitting to breaching US export controls involving Iran and North Korea, part of which was suspended under strict conditions.

Those safeguards failed to prevent further action. In 2018, the US Commerce Department accused ZTE of misleading authorities about employee discipline tied to those violations, triggering an export ban that temporarily halted its operations.

The ban was lifted only after ZTE paid additional penalties and accepted closer oversight.

The latest allegations are reported to involve conduct dating back to 2018, during a period when ZTE was already subject to external monitoring.

In 2024, the company reported net profit of $1.19 billion, down from the prior year, leaving limited room to absorb another large financial hit.