US government opens investigation into Huawei over possible export to Iran

The US government has launched an investigation into Huawei over the possible export of telecom equipment to Iran at the time of sanctions against that country. The US can put Huawei under surveillance.

The US Justice Department is investigating whether Huawei has ignored US sanctions against Iran, The Wall Street Journal reports in an article that can also be read via an archive site. If that is the case, a ‘corporate monitor’ may follow, a punishment in which the department appoints a supervisor who will keep an eye on everything within the company. The company itself may nominate three candidates who can fill the position.

It is also possible that the US government will prosecute persons who have been involved in the violation, the business newspaper reports. Last year, the US government fined competitor ZTE and other sanctions for the same offense. Recently, the US government said that ZTE was not adhering to the agreements and imposed a trade ban. As a result, American companies are no longer allowed to supply products to ZTE. That sanction threatens the survival of the company, ZTE claims.

Huawei does limited business in the United States. The US government is opposed to the use of Huawei devices. For example, American providers opt for other network equipment than that of Huawei, while the smartphones of the Chinese manufacturer are hardly for sale in the country. The situation is different in the Benelux. Huawei manages the network for T-Mobile and also does business with other providers, while the smartphones are on the shelves at almost all stores.