Justice Department investigating Huawei for violating USA sanctions on Iran

DOJ probing Huawei over possible sanctions violations: report

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

U.S. authorities have subpoenaed Huawei seeking information related to possible export and sanctions violations, two sources said.

Even before the export ban on ZTE, the US Congress barred the Pentagon from buying equipment from ZTE and Huawei Technologies.

Seen as an extension to the ongoing bilateral trade spats, the US Department of Commerce has imposed a ban on ZTE for sanctions violations, prohibiting American firms from selling components to the China telecom equipment maker for seven years.

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Attorney for the Southern District of NY ". "He would have done a great job... and they're trying to destroy a guy", Trump said. He said Wednesday that he would assert his constitutional right against self-incrimination in that case.

The ban will also impact the business of a number of U.S firms including Qualcomm, Dolby and Acacia Communications.

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.

Acacia, the Massachusetts-based optical interconnect components maker, is among the major affected American companies.

Analysts said a worst-case scenario could entail Huawei suffering the same fate as smaller Chinese rival ZTE which has lost access to USA -made components as well as Google Android software in a similar probe.

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With a trade spat escalating between the USA and China, and fresh from American phone networks AT&T and Verizon withdrawing their support of the Chinese brand - most handsets sold in the United States are subsidised by carriers - that dream appears further out of Huawei's reach. China doesn't actually have any sanctions on the country, and shipping Chinese technology would not directly violate United States sanctions. Throw in the fact that ZTE continued to obstruct investigations during the probationary period, and it should come as no surprise that the Department of Commerce came down hard on the company.

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

ZTE Corp also invested $50 million in compliance training previous year, a number expected to increase, and has organized 65,000 staff members to attend, the report said. The probe being conducted by the Justice Department is aimed at limiting the access of Huawei, ZTE and other Chinese tech companies to the USA market.

"America's investigation has no impact on our company", a chief executive from Huawei, the world's third-biggest mobile phone company after Apple and Samsung, told reporters from National Business Daily (NBD), a financial newspaper in China, on Wednesday evening.

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