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US Investigating Huawei for Sanctions Violations – Report

Phil Harvey

Huawei is, once again, the subject of some unwanted US government attention.

The Wall Street Journal, citing unnamed sources, said the Justice Dept. "is investigating whether Huawei Technologies Co. violated US sanctions related to Iran."

There aren't many details beyond that at this point, but we do know this will make it tougher for Huawei to operate, at any scale, in the US.

"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," the company replied, in an email to Light Reading.

In just a few months, Huawei's had US carriers reject its products and lawmakers attempting to push through bans on all US government agencies from buying its products and services. Congress did pass a bill keeping Defense Dept. dollars from Huawei and others; that was signed into law late last year.

The FCC, meanwhile, aims to prevent companies like Huawei and ZTE -- and maybe Russian vendors, too -- from enjoying any carrier spending done via the $8.5 billion a year Universal Service Fund (USF). The agency does not name any vendors or countries in its document seeking outside comment, but they've not kept it a secret who they're targeting. (See FCC Eyes USF Funds Ban for Chinese Vendors .)

In FCC Chairman Ajit Pai's remarks related to the Notice of Proposed Rulemaking, he notes that the government is seeking to disallow any "equipment [that] can allow hostile foreign powers to inject viruses and other malware, steal Americans' private data, spy on US businesses, and more" from being purchased via the USF. (See FCC Proposes USF Ban on Vendors Deemed a Security Threat .)

Related posts:

— Phil Harvey, US News Editor, Light Reading

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Phil Harvey
Phil Harvey
4/25/2018 | 6:16:38 PM
Re: Weird
True, but we're reporting the investigation, so we do owe them right of reply. And, of course, they can't/won't say much given the stakes, but we will always ask.
4/25/2018 | 6:06:22 PM
Re: Weird
Huawei's reply is NOT needed. Are they buying components from US vendors and selling the telecom gear/phones to IRAN? If yes, than they are in violation of US sanctions policy. You can defend Chinese vendors, but truth needs to come out.
4/25/2018 | 5:53:16 PM
Re: Weird
Or that the govt. should ban Facebook! Hahahaha.
Phil Harvey
Phil Harvey
4/25/2018 | 4:29:33 PM
Re: Weird
I included the quote because I did find it both fascinating and really far-reaching. As ever with this sort of thing, American companies can be guilty of all the things he's listed, but they'll get a pass.

Also, a programming note: I updated the story with a reply from Huawei.

4/25/2018 | 4:10:39 PM
"equipment [that] can allow hostile foreign powers to inject viruses and other malware, steal Americans' private data, spy on US businesses, and more" -- I don't know the context of this quote from Chairman Pai, but on the surface it seems a bit wonky. Inject viruses? Is that how the Intertubes gets infected? The steal Americans' private data point is also odd, given the whole Facebook thing. It's almost like he isn't even trying to come up with reasons.
4/25/2018 | 3:20:12 PM
Where are the Huawei Supporters arguing US is afraid of Competition?
Where are the Huawei Supporters arguing US is afraid of Competition? Also, Lightreading author  Iain Morris  articles  about Huawei acheivements? What do you have to say now? Please speak up. If the news is true and US Govt. can verify, game should be over. 

Here is what is published regarding the two Chinese telecom vendors. 

ZTE's US suppliers are bracing for a sizaeble revenue loss after Washington banned component sales to Chinese telecom firm. 




Wallstreet Journal:

Huawei Under Criminal Investigation Over Iran Sanctions

The Justice Department is probing whether Huawei violated U.S. sanctions related to Iran, opening a new avenue of scrutiny amid national-security concerns over the Chinese technology giant.

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