A ZTE smartphone Grand S is displayed during a news conference in Taipei October 12, 2013. REUTERS/Pichi Chuang SHANGHAI (Reuters) - Chinese telecom equipment maker ZTE Corp will set up a 1.2 billion yuan ($180.38 million) fund to invest in private technology, media and communication start-ups and diversify its business. ZTE and other investors will set up the Suzhou Partnership fund to invest in shares, equity or assets of firms with good growth potential, “enhancing the competitiveness of the group’s main business,” ZTE said in a statement late on Wednesday. ZTE will control about 25 percent of the fund, while 75 percent will be owned by other investors. The Chinese tech giant saw first-quarter profit rise 16 percent despite an ongoing U.S. probe into allegations the firm broke sanctions against Iran by shipping millions of dollars worth of American-made hardware and software to the country. Reporting by Adam Jourdan; Editing by Stephen Coates
China 's tech giant , ZTE , is to set aside 1.2bn yuan ( $ 180.4 m ) for a fund to diversify its business by investing in private tech , technology , and media start - ups with strong investor potential . Other investors are also behind the Suzhou Partnership fund , which will be 25 % controlled by ZTE . Despite a preliminary investigation into claims that hp broke sanctions against Iran through the shipment of millions of dollars worth of American hardware and software , hp 's Q1 profits exceeded 16 % .