Published: Fri, April 27, 2018
Tech | By Amelia Peters

DOJ is investigating Huawei for violating Iran sanctions

DOJ is investigating Huawei for violating Iran sanctions

U.S. prosecutors in NY have been investigating whether Chinese tech company Huawei violated United States sanctions in relation to Iran, according to sources familiar with the situation. We don't know the specifics of the investigation, but Huawei could face similar penalties if the government decides it acted improperly. It did not specify what actions it would take.

On its part, Huawei says that it complies with all applicable laws and regulations in the countries where it operates.

The Justice Department probe comes after subpoenas were issued to the company by the U.S. Commerce and Treasury departments over sanctions-related issues, according to Reuters, The Wall Street Journal, The New York Times, and other media, which cited anonymous officials. The company also pledged to shoulder responsibilities to global clients, consumers, partners and suppliers and insist on independent innovation in core technologies, People's Daily reported Tuesday.

A foreign ministry spokeswoman, Hua Chunying, said Thursday that China opposes any country imposing unilateral sanctions based on its own law. Though, it appears that troubles for Huawei don't end there.

That is in stark contrast with ZTE, the Shenzhen-based telecommunications equipment maker that is both Huawei's competitor and comrade in the global technology race.

More news: Watch Milind Soman and Ankita Konwar dancing as they ring wedding bells

More than a dozen US companies listed ZTE as a customer in previous financial filings. Last week, the U.S. Department of Commerce announced that ZTE would be banned from buying components from U.S. companies for a period of 7 years due to its blatant disregard for a plea agreement to atone for previous transgressions.

In April 2017, lawmakers sent another letter to Commerce Secretary Wilbur Ross asking for F7 to be publicly identified and fully investigated.

But the Department of Commerce has now imposed this ban after accusing ZTE of making false statements during settlement negotiations and the probationary period relating to disciplinary actions the vendor claimed it was taking on senior employees embroiled in the sanctions case.

The Chinese company came under US pressure in 2012 when a congressional report concluded both Huawei and ZTE could become a tool for state-sponsored spying or sabotage.

American companies that supply chips and other components to Chinese telecom equipment maker ZTE Corp. are experiencing sizable revenue loss after the United States imposed a denial of export privileges against the company on April 16.

Like this: