US Department of Commerce to accept additional evidence from ZTE
- Author: Sonia Alvarado Apr 26, 2018,
Apr 26, 2018, 6:46
ZTE Corp., one of China's biggest tech companies, said Sunday that it is taking steps to comply with a US technology ban and that it is seeking a solution to the issue it says threatens its survival.
Agents from the Federal Bureau of Investigation, which is overseen by the Justice Department, have been looking into transactions by the Shenzhen, China-based mobile and telecommunications giant, the people said.
The action was sparked by ZTE's violation of an agreement that was reached after it was caught illegally shipping U.S. goods to Iran. The probe was first reported by the Wall Street Journal on Wednesday.
The investigation comes one month after the agency reached a $430 million settlement with Chinese phone-maker ZTE for also violating US sanctions with Iran.
The DoJ declined to comment, while Huawei was not immediately available for comment. That's the same thing that got ZTE slapped with a almost $1 billion fine and (recently) a USA technology export ban.
The DOJ's actions follow a larger pattern of the US increasingly cracking down on Chinese firms.
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Huawei's struggle against the USA government seems to have taken yet another turn.
Schloss, the Huawei spokesman, said those allegations aren't true.
If Huawei is found to have violated sanctions, it could be hit with major penalties including fines, the forced use of a corporate monitor, and even USA technology export bans.
Huawei - one of the world's largest telecommunications equipment and services providers - has been under tough scrutiny in the United States, where government national security officials say that its alleged close links to the Chinese government make it a security risk. Earlier this year, things escalated when carriers and, later, retailers pulled out from partnerships with Huawei, refusing to sell its smartphones.
Huawei maintains research and development facilities in Texas, New Jersey, California and four other USA states, all of which provide technology for Huawei's global operations.