US Department Of Justice Is Investigating Huawei For Violating Iran Sanctions

US Department Of Justice Is Investigating Huawei For Violating Iran Sanctions

The Justice Department is investigating whether Huawei violated United States sanctions with regards to Iran, sources tell the WSJ, an action that could result in criminal charges for Huawei executives, and provide a killer blow for the company's ambitions in the USA and Europe.

"Realistically, Huawei doesn't need the USA, given its strong market in China, and its increasing market share in Asia, Europe and Africa", said Paul Haswell, a partner at the global law firm Pinsent Masons. Somewhat fueled by the fact that the founder of the company once worked for the Chinese government.

It's somewhat uncertain as to whether Huawei has actually supplied anything to Iran. Giants such as San Diego chip maker Qualcomm Inc. and niche. Huawei does at least make its own Kirin mobile chips.

China's ZTE Corp. held a conference call on Wednesday with major suppliers, during which a company representative suggested the trade dispute with Beijing may have been a factor in last week's US order banning American firms from selling goods to the smartphone maker, according to a person familiar with the call.

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Huawei and ZTE have denied these allegations.

China has called on Washington to avoid damaging business confidence following a report USA authorities are investigating whether Chinese tech giant Huawei violated sanctions on Iran. The Department of Justice has opened an official investigation of Huawei that could have wide-ranging implications for its business.

Huawei spokesman Charles Zinkowski said in a statement that the company "complies with all applicable laws and regulations where it operates, including the applicable export control and sanction laws and regulations of the United Nations, U.S., and European Union".

Similar penalties will be unlikely on Huawei even if the Chinese company were indeed being investigated, analysts said.

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The government's order, which went into effect immediately, bans American firms from exporting components directly to ZTE or through a third country until March 13, 2025. The move has not only dealt a heavy blow to ZTE, but may also threaten the development of industry value chains.

Huawei was originally set to launch its Mate 10 Pro handset in the US through major US carrier AT&T earlier this year, although the latter later backed out of the agreement following cybersecurity concerns raised by members of the US Senate and House intelligence committees.

According to the new report, the DoJ previously issued Huawei administrative subpoenas to gather information on possible violations of Iranian sanctions.

"We hope that the U.S. doesn't take any further steps to damage confidence in the American business environment", Hua said at a regular press briefing.

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