Chinese telecommunications equipment maker ZTE Corp may be required to pay more than $1 billion to the U.S. government to settle years-old foreign bribery allegations, according to two people familiar with the matter.

ZTE — which has already paid roughly $2 billion in penalties to U.S. authorities for export-control violations during President Donald Trump’s first term — has for years been under scrutiny by regulators worldwide over alleged bribes used to win telecommunications contracts.

This year, the U.S. Justice Department has advanced an investigation into whether ZTE violated the Foreign Corrupt Practices Act (FCPA) in South America and other regions, the sources said. The FCPA bars companies from offering payments or anything of value to foreign officials to secure business.

U.S. officials, in discussions not previously reported, are working on a potential settlement under which ZTE could pay more than $1 billion — or possibly $2 billion or more, one source said — partly based on the company’s alleged gains from corruptly obtained contracts.

ZTE did not respond to Reuters’ requests for comment. In an August 2024 memo to employees, shareholders and business partners, the company said it maintains a “zero-tolerance attitude towards any form of corruption or bribery” and has established an anti-bribery compliance framework.