ZTE pleads guilty to violating US sanctions

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Chinese telecommunications group ZTE has pleaded guilty to violating US sanctions on North Korea and Iran.

The plea comes after a more than a year of negotiations with the US government and five years of investigations by US officials into the company’s dealings with Iran and North Korea.

ZTE earlier this month said it would plead guilty and pay up to $1.2bn in fines. The company said in a filing to the Hong Kong Stock Exchange that its agreement with the Department of Justice had now become effective. ZTE earlier said it had agreed to pay a $430m fine to the department on approval from the court.

The company’s shares rose 0.7 per cent during early trading in Hong Kong to HK$14.62, while the benchmark Hang Seng index was up 0.1 per cent.

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