Chinese network vendor ZTE Corporation is working US Department of Justice (DOJ) amid reported allegations of bribery across multiple markets.

Reuters reported last week that ZTE could pay more than $1 billion to the US government to resolve years-old allegations of foreign bribery.

The potential fine is in relation to a US investigation into ZTE for allegedly violating the Foreign Corrupt Practices Act (FCPA) in South America and other regions. This particular act prohibits payments or anything of value to foreign officials to obtain business.

During President Donald Trump's first term, the US fined ZTE $2 billion over export violations, which included ZTE illegally shipping US technology to Iran.

The US is working on a resolution that could see ZTE pay $1bn this time around, sources told Reuters last week.

ZTE has since responded to the allegations, stating that it's working with the US DOJ.

"The board of directors of the company has noticed the recent media reports regarding an investigation into the company’s compliance with the Foreign Corrupt Practices Act (FCPA) of the United States. The company is in ongoing communication with the United States Department of Justice regarding the relevant matters and will resolutely defend its rights and interests through legal means and other measures," ZTE said in a statement.

ZTE added that it "opposes all forms of corruption and maintains a zero-tolerance policy toward any individuals who may be involved in such activities," noting that its current production and operations remain normal.

Since the reports last week, ZTE's share price has dropped by more than 12 percent.