US DoJ probing Huawei for possible Iran sanctions violations

The ZTE Axon

The ZTE Axon

The Department of Justice (DOJ) is investigating Chinese phone-maker Huawei over whether it violated USA sanctions against Iran, The Wall Street Journal reported on Wednesday.

The US has taken a recent stance against Huawei's products.

ZTE can not accept the seven-year purchase ban on crucial U.S. technologies, including chips, as it took effect before the investigation was done, he said.

The probe of Huawei is similar to one that China's ZTE Corp says is now threatening its survival.The United States last week banned American firms from selling parts and software to ZTE for seven years.

So now they're banned from doing business here.

"Huawei complies with all applicable laws and regulations where it operates, including the applicable export control and sanction laws and regulations of the UN, US and European Union", spokesman Charles Zinkowski said in a statement.

Later that day, a senior US Commerce Department official told the Wall Street Journal that the agency had granted ZTE's request to present additional evidence on the case, even though the company does not have the right to make an appeal under the department's regulations. ZTE was found to have violated that sanction and was fined a hefty $1.2 billion a year ago.

Following a somewhat gloomy outlook from Apple's main supplier of semiconductors, Taiwan Semiconductor Manufacturing Co., markets are also losing confidence in Chinese hardware makers.

A foreign ministry spokeswoman, Hua Chunying, said Thursday that China opposes any country imposing unilateral sanctions based on its own law. Though, it appears that troubles for Huawei don't end there.

Huawei and ZTE have denied these allegations. ZTE, the other Chinese company being probed by USA authorities, had said that the investigation could threaten its survival in the US.

In April 2017, lawmakers sent another letter to Commerce Secretary Wilbur Ross asking for F7 to be publicly identified and fully investigated.

Since April 2016, ZTE Corporation (hereinafter referred to as "ZTE") has continuously reflected on lessons from its past experience in Export Control Compliance and has attached great importance to Export Control Compliance. The probe being conducted by the Justice Department is aimed at limiting the access of Huawei, ZTE and other Chinese tech companies to the United States market.

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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