- One of largest export and sanctions penalties ever imposed
- Reminder of U.S. government's broad jurisdiction over export and sanctions matters
- Cooperation could have helped ease the penalty significantly
On March 7, 2017, Chinese telecommunications company, Zhongxing Telecommunications Equipment Corp. (ZTE), signed on to three separate settlement agreements with the United States, agreeing to pay $892 million for violations of U.S. sanctions and export controls. Even more could be due if ZTE strays from the commitments it has made under the settlement agreements. This is one of the largest penalties ever imposed by the U.S. government for export and sanctions violations.
It is impossible in the space of this blog article to provide a detailed summary of this matter. In addition, while the details of the matter would make good copy, we think (hope!) that this is something of an isolated incident. At the same time, we think several lessons can be derived from this action.
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