China's ZTE agreed to pay $892 million to the U.S. government as part of a settlement of claims it violated sanctions on Iran, said the Justice Department in a statement Tuesday.

The smartphone and tablet maker is accused of shipping equipment using items made in the U.S. to Iran illegally, said the Justice Department. The company also bid on two projects based in Iran involving cellular and landline network infrastructure, which would include using components from the U.S. ZTE was also accused of trying to cover up its dealings with Iran.

"ZTE Corporation not only violated export controls that keep sensitive American technology out of the hands of hostile regimes like Iran’s – they lied to federal investigators and even deceived their own counsel and internal investigators about their illegal acts,” said Attorney General Jeff Sessions in a statement.

ZTE will pay a combined penalty of $1.19 billion to the U.S. Commerce, Justice and Treasury departments. ZTE must also work with a monitor for three years to make sure they comply with export rules.

Follow Brett Molina on Twitter: @brettmolina23.

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