The U.S. Department of Justice is investigating whether Huawei has violated U.S. trade sanctions against Iran.
It is unclear to what extent the Ministry of Justice’s investigation has progressed, and it is unclear what specific allegations the Federal Agent is investigating. Huawei spokesperson declined to comment.
This investigation increased the risk of Huawei. At present, the U.S. government is taking a series of measures aimed at Huawei to reduce Huawei's business in the United States. This may create a ripple effect on Huawei's wider overseas operations, especially in Europe.
Under the circumstances that the U.S. government has stepped up its review, some of Huawei’s large businesses have become very cautious.
The U.S. government also recently mentioned that Huawei poses a threat to the U.S. leadership in the future mobile communications market. Huawei is the world's largest manufacturer of cellular network equipment and other telecommunications equipment, and the third largest smartphone manufacturer in the world, second only to Apple and Samsung Electronics.
Informed sources said that the criminal investigation against Huawei was based on subpoenas issued by the Office of Foreign Assets Management of the US Department of Commerce and the Ministry of Finance for sanctions-related issues.
The investigation by the Ministry of Justice has not been reported before, and the criminal investigation itself means that Huawei may have more serious misconduct. The Ministry of Commerce and the Ministry of Finance can impose administrative sanctions and supervise sanctions on the company.
However, if investigators determine that Huawei intentionally violates U.S. export laws, then Huawei may face criminal penalties, possibly monitoring the company or suing individuals suspected of engaging in illegal activities, and may also have other consequences.
Last year, Huawei’s rival ZTE agreed to pay a fine of US$892 million. This penalty was jointly made by the U.S. Department of Justice, the Ministry of Commerce, and the Ministry of Finance. ZTE admitted that it violated a law to control the export of sensitive goods and shipped US telecommunications equipment to Iran. Last week, the U.S. Department of Commerce stated that ZTE violated the terms of the agreement and intensified sanctions: It prohibited US companies from selling components to ZTE.
This penalty poses a serious blow to ZTE, which has been relying on U.S. suppliers to provide components for the production of telecommunications equipment and smart phones. The U.S. Department of Commerce said on Friday that it will allow ZTE to submit evidence in an informal appeal.
Representatives of the Ministry of Justice, the Ministry of Commerce and the Ministry of Finance declined to comment. The New York Times reported earlier last year that after the U.S. Department of Commerce conducted a separate investigation into Huawei, the U.S. Department of the Treasury issued an administrative summons related to sanctions to Huawei in December 2016.
Last week, Corton’s two-party Senate group wrote a letter to the U.S. Department of Agriculture. The Ministry of Agriculture operates a project called "Public Utilities Services" that provides authorizations and loans to improve telecommunications infrastructure. The senators asked the Ministry of Justice to consider prohibiting the use of these funds to purchase equipment for Huawei and ZTE. The representative of the Ministry of Agriculture did not immediately comment.
The Federal Communications Commission also took similar measures last week and proposed to ban the use of the FCC Rural Telecommunication Fund to purchase equipment from Huawei and ZTE.
Huawei responds to be investigated: In any country, it complies with all regulations
On April 26, according to a report yesterday by foreign media on the “US to investigate Huawei” report, Huawei stated that Huawei complied with all applicable laws and regulatory requirements of the countries in which it operates, including the applicable UN, U.S., and EU exports. Legal and regulatory requirements for regulation and sanctions.
Yesterday evening, the Wall Street Journal reported that the U.S. Department of Justice is investigating whether Huawei has violated the sanctions imposed on Iran.
It is not yet clear to what extent the Ministry of Justice’s investigation has progressed, and what the specific allegations are being investigated.