U.S. Probation of ZTE Lifted
Shenzhen-based telecommunications company ZTE Corporation announced it intends to disclose key issues while its shares will be temporarily suspended from market opening on March 23, 2022, according to the Shenzhen Stock Exchange (SZSE) on Wednesday. ZTE then issued a suspension announcement on the Hong Kong Stock Exchange (HKEx), and trading of its H shares was suspended from the opening of the market.
At noon on Wednesday, ZTE issued a resumption announcement, saying that the probation period would expire on March 22, 2022 (U.S. time). The latest judgment informed that the U.S. court had ruled that the company’s probation would not be revoked without any additional punishment. The news represents a major victory for ZTE in the legal hearing.
On March 8, 2016, the U.S. Department of Commerce accused ZTE Corporation of violating its export control policies towards Iran, and imposed an embargo on ZTE, prohibiting U.S. firms from selling products to the telecommunications company.
In March 2017, ZTE announced that the company had reached an agreement concerning the investigation of its compliance with U.S. export control regulations and sanctions laws by the Bureau of Industry and Security (BIS), the Treasury Department’s Office of Foreign Assets Control (“OFAC”). In view of the fact that the company violated U.S. laws and regulations by providing information and other acts during the investigation, ZTE has agreed to plead guilty and pay a total fine of $892 million. In addition, BIS imposed a suspended fine of $300 million on the company, which will be waived after ZTE performs conditions required in the agreement with BIS during the seven-year suspension period.
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ZTE stated in the latest announcement that the company is committed to building a world-class enterprise, taking compliance as the cornerstone of strategic development and the bottom line of operations. It complies with the applicable laws and regulations of the country wherever it operates, and comprehensively carries out the construction of compliance system. It will fulfill its responsibilities to global customers, employees, shareholders and partners, and will actively promote the innovation and sustainable development of the global information and communications technology industry.