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ZTE will be monitored even longer after violating probation

A US judge extends the monitor's term by two years.

ZTE research institute , located in Tianjin Binhai New Area

A US judge issued an order extending the term of a probation on ZTE.

Zhang Peng/LightRocket via Getty Images

ZTE is back in the spotlight again.

The Chinese telecom giant and phone maker has been found guilty of violating a probation imposed on it in March 2017, according to an order issued by a US judge, Reuters reported Wednesday.

The probation was placed on ZTE -- in addition to an $892 million fine -- after it pleaded guilty to illegally shipping millions of dollars' worth of US technology to Iran then lying to investigators when questioned about it.

The non-compliance of the probation cited by the judge involved ZTE failing to dismiss the 35 employees involved in the illegal shipping, according to the news outlet.

The company was penalised for the same offense in April by the US Commerce Department, which had then imposed a seven-year ban on it that was only lifted in July after it agreed to pay $400 million as a deposit in case of future violations.

As a result of this violation, the judge extended ZTE's probation to 2022, according to a statement issued on the Hong Kong exchange on Wednesday. It was originally scheduled to end by 2020.

ZTE also has to provide the court-appointed monitor assessing its compliance with the same access to the material and information it gives the monitor appointed by the commerce department, according to the statement.

ZTE has been contacted for comment.

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