Following ZTE, Huawei faces investigation for violation of United States sanctions
26 April, 2018, 06:45 | Author: Essie Rivera
Overnight the US Justice Department confirmed that they are investigating whether Huawei Technologies violated USA sanctions related to Iran.
According to the new report, the DoJ previously issued Huawei administrative subpoenas to gather information on possible violations of Iranian sanctions. Today's report says that the Justice Department investigation deals with allegations that Huawei violated US sanctions against Iran. The U.S. government effectively barred the Chinese firm from buying American technology in a move that will severely impact ZTE's ability to produce its own smartphones, and could send shockwaves throughout the rest of the smartphone supply chain. The new sanction, which banned export of any USA hardware or software technology to ZTE, was imposed after the United States government determined that the company lied about the steps it took to correct its actions or punish those involved in violating the sanctions. ZTE had previously reached a settlement with the Commerce Department's Bureau of Industry and Security, and pleaded guilty as part of a sanctions-violations agreement with the Justice Department.
Wall Street Journal wasn't able to get a hold of the details of the criminal investigation other than it was also about violating trade embargos against Iran.
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The DOJ's actions follow a larger pattern of the USA increasingly cracking down on Chinese firms. In addition to producing networking gear and other electronics, it was the globe's No. 3 smartphone seller past year behind Samsung Electronics Co. and Apple Inc. After all, Huawei has been in the USA government's cross hair perhaps longer than ZTE.
Schloss, the Huawei spokesman, said those allegations aren't true. Government reports have also accused both ZTE and Huawei of being security threats to the US.
Huawei maintains research and development facilities in Texas, New Jersey, California and four other US states, all of which provide technology for Huawei's global operations.
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The person also said the Justice Department previously examined this matter in 2016, but ended up dropping the investigation. With an eSIM embedded in a handset , the user doesn't have to swap a SIM card on a phone to change carriers.