China's ZTE will take 'certain actions' against USA ban

China's ZTE will take 'certain actions' against USA ban

China's ZTE will take 'certain actions' against USA ban

The US Justice Department has opened an investigation into suspected violations of Iran sanctions by China's Huawei Technologies, the Wall Street Journal reported Wednesday.

In April 2017, the New York Times reported the Office of Foreign Assets Control and the Department of Commerce had issued subpoenas to Huawei during the previous year.

China's ZTE Corp said on Wednesday it planned to take "certain actions" under US laws following a ban by the USA government on American firms doing business with the company.

Details on specific violations the DOJ's Huawei investigation is probing are not known yet. ZTE agreed to pay $892 million in fines and forfeitures in the Justice Department deal, at the time the largest USA criminal fine against a Chinese company, with additional fines if it failed to comply with the deal. As we stated last week in the midst of the ZTE issue, it's possible that any export bans, fines, etc. could get negotiated away or significantly reduced. Ciena and Infinera, of course, compete with both Huawei and ZTE in worldwide markets (except China).

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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. 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.

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 U.S. technology export bans. Then, consumer electronics retailer Best Buy Co. stopped selling Huawei phones, laptops and smartwatches.

Huawei would not comment on the Journal report.

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.

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