United States probing Huawei for possible Iran sanctions violations

DOJ probing Huawei over possible sanctions violations: report

DOJ probing Huawei over possible sanctions violations: report

Overnight the US Justice Department confirmed that they are investigating whether Huawei Technologies violated USA sanctions related to Iran.

The US has taken a recent stance against Huawei's products. It did not specify what actions it would take.

ZTE has also been faced with similar heat, albeit more damaging as the Department of Commerce hit it with a seven-year ban from using any software or hardware components that are exported from the United States - effectively stopping its smartphone business in the country.

The company is taking steps to suspend affected transactions as a result of the ban and is assessing the impact of these developments on Acacia, it said in a statement. Washington accused ZTE of violating an agreement on punishing employees after the company illegally shipped USA goods to Iran. Tariffs against Chinese manufacturers were also joined by actions against Chinese tech companies.

"China's position opposing nations using their own domestic laws to impose unilateral sanctions is consistent and clear", she told a daily news briefing.

In February, Senator Richard Burr, the Republican chairman of the US Senate Intelligence Committee, cited concerns about the spread of Chinese technologies in the United States, which he called "counterintelligence and information security risks that come pre-packaged with the goods and services of certain overseas vendors".

At the Huawei Analysts Summit in Shenzhen last week, Huawei rotating chariman Eric Xu appeared to acknowledge that the company has been largely locked out of the USA market.

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.

ZTE's misdeeds with respect to the USA government included proving networking equipment to sanctioned countries like North Korea and Iran.

The Denial Order will not only severely impact the survival and development of ZTE, but will also cause damages to all partners of ZTE including a large number of USA companies.

But as the Commerce Department revealed last week, ZTE never reprimanded its 35 lower-level employees, and worse, it made false statements to the Department about its compliance.

The order "sends the wrong message" to other companies who may be considering settling with the Commerce Department over export control issues, ZTE said.

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