US DoJ probing Huawei for possible Iran sanctions violations

The Wall Street Journal's Stu Woo and Aruna Viswanatha relate that multiple unnamed sources say the DoJ is "investigating whether Huawei Technologies Co. violated US sanctions related to Iran". The New York Times last April reported the U.S. Treasury's Office of Foreign Assets Control subpoena, issued in December 2016, following a Commerce Department subpoena that summer.

The US Department of Commerce banned US exports to the company after it found that ZTE violated an agreement.

The U.S. government's investigation into sanctions violations by ZTE following reports by in 2012 that the company had signed contracts to ship millions of dollars' worth of hardware and software from some of the best-known U.S. technology companies to Iran's largest telecoms carrier.

A group of Republican lawmakers pushed the Trump administration last April to investigate and identify F7, citing news reports that have highlighted the similarities between the company described in the documents and Huawei.

The DoJ declined to comment, while Huawei was not immediately available for comment.

Schloss, the Huawei spokesman, said those allegations aren't true.

Huawei was founded in 1988 by former Chinese army engineer Ren Zhengfei, leading to congressional concerns over Chinese military and government influence at the company.

Huawei's struggle against the United States government seems to have taken yet another turn. In addition to producing networking gear and other electronics, it was the globe's No. 3 smartphone seller previous year behind Samsung Electronics Co. and Apple Inc.

Major US telecoms companies have already steered clear of the two Chinese firms, sometimes on the strong suggestions of US officials. If Huawei were to eventually be cut off from buying USA components, which is not our base case assumption, then the market share gain opportunities for NOK, CIEN and INFN would become even greater, in our view.

  • Joey Payne