Following ZTE, Huawei faces investigation for violation of USA sanctions

ZTE says US ban will 'severely impact' its survival and partnerships

The Department of Justice (DOJ) is investigating Chinese phone-maker Huawei over whether it violated US sanctions against Iran, The Wall Street Journal reported on Wednesday. The Commerce Department in 2016 issued an administrative subpoena aimed at Huawei, China's largest maker of telecommunications equipment, seeking information about whether it was sending USA technology to rogue nations including Syria, Iran and North Korea. It started years ago with the accusation that the Chinese government uses companies like Huawei and ZTE to spy on other countries like the US. That action by the Commerce Department was also about ZTE's infractions of the ban on trade with Iran. 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. Now, the Wall Street Journal reports the government is taking more direct action against the Chinese technology giant.

Glenn Schloss, a spokesman for Huawei in Shenzhen, declined to comment about the probes. That's the same thing that got ZTE slapped with a almost $1 billion fine and (recently) a United States technology export ban. This is just the latest action against Iran, which has always been blocked from selling telecom equipment to USA carriers by the US government.

In April, the Federal Communications Commission (FCC) announced that it would consider policies to stop using portions of its funding on products from companies that pose a potential national security threat.

More news: Kaizer Chiefs appoint Patrick Mabedi as interim coach
More news: The authors of the new Battlefield working on the "Royal battle"
More news: Nawaz, Maryam to leave for London today

We see Ciena (CIEN, $26.36, Buy), Infinera (INFN, 11.56, Hold), and possibly Nokia (NOK, $6.00, NC) as potential winners from any incremental sanctions against Huawei.

Huawei and ZTE have denied these allegations. In addition to producing networking gear and other electronics, it was the globe's No. 3 smartphone seller a year ago behind Samsung Electronics Co. and Apple Inc.

According to the report, the Department of Commerce has agreed to receive new evidence from ZTE through an informal procedure.

Related News:



Most liked

Differences shouldn't lead to disputes in India-China ties: Sitharaman
The SCO, headquartered in Beijing , was founded in 2001. "Indeed, as the world has now realised, there are no good terrorists". Observers also believe that with deepening China-Pakistan relations, India is keen to restore ties with China.

Tom Brady's agent expects Patriots QB to play in 2018
He made it official on Tuesday, as the former Arizona Football tight end will delay retirement for at least one more year. If Brady retired now, he'd leave New England in a bit of a predicament.

Andujar homers, doubles as Yankees thrash Twins
Duffey was converted into a full-time reliever last season, going 2-3 with a 4.94 ERA in 56 appearances with the Twins. A day after making his debut, Torres singled in the eighth, ending an none-for-seven start for the prized 21-year-old.

Toronto Maple Leafs pushed to the brink after Bruins win Game 4
He has five assists through the first three games of Boston's first-round matchup against the Leafs, which the Bruins lead 2-1. They won the first two game here by a combined 12-4 count, so they have to be very confident heading into this game.

Ocala school shooting suspect now charged with terrorism
School walkouts were canceled districtwide in Marion County after the shooting, according to school board member Nancy Stacy. Ocala police, the sheriff's office, the Florida Highway Patrol and the FBI were investigating.

Democrats sue Donald Trump's campaign and Russian Federation for interfering in 2016 election
As noted by the Post , the lawsuit seeks only millions of dollars in financial restitution and punitive damages. Both are being investigated by Mueller, whose office declined to comment on the Democratic lawsuit.

FA Cup semi-final preview - Man Utd v Spurs
Chelsea have progressed to the final from 11 of their last 14 FA Cup semi-final matches, losing out only in 1996, 2006 and 2013. The cup provides two Premier League heavyweights with their last opportunity to win silverware this season.

Brandon Marshall released, Dez Bryant next?
It makes sense that the 34-year-old agreed to take less money to remain with the Giants, though it doesn't matter now. Marshall was a First-team All-Pro in 2012 and was named to six Pro Bowls (2008, 2009, 2011, 2012, 2013, 2015).

Khloe Kardashian Feels 'Blindsided' By Tristan Thompson Cheating Allegations
She was completely torn When it came time to fill out the baby's gift certificate with either " Kardashian " or " Thompson ". Tristan Thompson has been plagued by the cheating scandal .

The 2018 Mustang Cobra Jet is instant drag racer royalty
Global demand for the new 2018 Ford Mustang has driven Mustang to its third straight year as the best-selling sports coupe in the world.

Abby Lee Miller diagnosed with non-Hodgkin's lymphoma
Melamed told ET on Wednesday that Miller's cancer diagnosis is preliminary, and the results are still pending a pathology report . While the final diagnosis is still not out, Miller is now recovering in the ICU, according to Dr.

Macron says democracy is the EU's 'best chance'
"We are discussing budget; France is ready to increase its share, but we need to work on re-establishing that budget". Macron said in a television interview Sunday: "It's now that Europe's fate is being decided".

Borna Coric: 'Novak Djokovic helped me a lot when I was younger'
Nadal brought up set point in the opener with a trademark, curling forehand up the line, before sealing the set with a drop shot. Djokovic has won the title twice, including when he ended Nadal's 46-match winning streak by winning the 2013 title.

Tesla Inc (TSLA) Will Ramp Production Up To New Highs
Sullins wrote on the fundraising page that if Musk does not accept the money, the funds will be donated to charity. Shares of Tesla were up 5 points to US$293 in pre-market trading on Wednesday.

Play Store Is Filled With Android Apps Tracking Kids' Online Activity
The latest finding could be another big revelation related to user privacy following Facebook's Cambridge Analytica scandal . Around 3,337 of free apps on the Google Play Store are wrongfully collecting data about children, Engadget reported.





Most Commented