Date
26 July 2017
ZTE has agreed to cooperate with the US investigations over its alleged violations of trade rules. Photo: Bloomberg
ZTE has agreed to cooperate with the US investigations over its alleged violations of trade rules. Photo: Bloomberg

US trade probe could result in criminal charges, says ZTE

Chinese telecommunications equipment maker ZTE Corp. (00763.HK, 000063.CN) said the United States could file charges against the company for alleged violation of trade rules.

“The investigations are still in progress, and may result in criminal and civil liabilities under US laws,” the Wall Street Journal quoted ZTE as saying in a regulatory filing.

The Shenzhen-based company said it cannot fully assess the potential legal liabilities or their impact on its financial conditions, the newspaper reported.

Last month the US Commerce Department slapped trade sanctions on the company, alleging it had violated rules that restrict exports of US technological goods to Iran and other nations.

The US government later agreed to suspend the sanctions, which hindered ZTE’s ability to procure US components and software, after the company agreed to cooperate with the US investigations.

On Tuesday, ZTE announced an overhaul of its top management, replacing three of its most senior executives including its chief executive, the Journal said.

It reported its 2015 financial results on Wednesday after a delay last month due to the US trade sanctions.

Its revenue and profit were lower than forecasts the company issued in January, the report said.

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CG

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