nsucurrent.com May 24, 2018

Huawei is under Department of Justice investigation for violating Iran sanctions

27 April 2018, 12:55 | Ricardo Garza

Huawei is reportedly under investigation for breaching US-Iran sanctions

DOJ probing Huawei over possible sanctions violations: report

China warned the United States on Thursday against harming trade after a report that U.S. authorities had opened an investigation into suspected violations of Iran sanctions by China's Huawei Technologies.

For some time now, the USA government and intelligence agencies have been warning consumers to not buy any Huawei smartphones.

In a cryptic message shared via Reuters on Wednesday, ZTE said it planned to take "certain actions" under usa law to counter the ban, but what exactly that means remains unclear.

The U.S Department of Commerce will allow ZTE to present additional evidence after the agency recently issued an order banning American firms from selling components and software to the Chinese technology firm, the Wall Street Journal reported.

"It was a factual update on what happened, what they've done since the order was put in place, and what they're doing to remedy the situation", a Semiconductor Industry Association spokesman said.

Huawei "complies with all applicable laws and regulations where it operates, including the applicable export control and sanction laws and regulations of UN, US and EU", according to a statement by the company.

Both companies also have been under scrutiny by United States lawmakers over cybersecurity concerns.

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

Huawei and ZTE have denied these allegations. In that instance, ZTE plead guilty to conspiring to violate USA sanctions against Iran and North Korea in a United States court past year, and promised to pay a fine, fire some staff, and withold bonuses from others as punishment.

Chinese telecomequipment maker ZTE Corp promised to protect the legitimate rights of staff members and shareholders after a ban by the US Department of Commerce. The Wall Street Journal says that the worse- case scenario facing Huawei is a similar US export ban.

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 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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