China's ZTE pleads guilty, settles with US over Iran, North Korea sales

International incident: ZTE acted contrary to US national security or foreign policy interests, the Commerce Department said.

NEW YORK: Chinese telecom equipment maker ZTE Corp has agreed to pay US$892mil (RM3.9bil) and plead guilty to criminal charges for violating US laws that restrict the sale of American-made technology to Iran and North Korea.

While a guilty plea deals a blow to ZTE's reputation, the resolution could lift some uncertainty for a company that relies on US suppliers for 25% to 30% of its components.