The Chinese firm ZTE Corp. is reportedly prepared to pay over USD 1 billion, approximately PHP 60 billion, to the U.S. government to address allegations of foreign bribery, according to sources cited by Reuters.
Previously, ZTE paid USD 2 billion, nearly PHP 119 billion, in penalties for export violations during the first term of U.S. President Donald Trump. This year, U.S. authorities have initiated an investigation into ZTE for allegedly violating the Foreign Corrupt Practices Act (FCPA) in South America and other regions. This act prohibits payments or other valuable offerings to foreign officials for business advantages.
The report indicated that U.S. officials are negotiating a resolution that could result in a payment exceeding USD 1 billion, possibly reaching USD 2 billion or more. ZTE confirmed in a regulatory filing that it is in “ongoing communication” with the Justice Department regarding the investigation.
ZTE stated its commitment to strengthening its compliance system and maintaining a zero-tolerance policy for corruption.
The timeline for reaching a settlement remains uncertain, as any agreement would need Chinese government approval. Liu Pengyu, a spokesperson for the Chinese embassy in Washington, mentioned that while he was not informed about the specifics of ZTE’s case, China mandates its companies to operate legally and adhere to local laws abroad.
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