Huawei’s Dealings with Iran and North Korea Draws US Subpoenas

While Huawei Technologies had tapped into markets as varied as Britain, India and Kenya and has become China’s most successful international technology company, it has also moved into markets like Syria where American officials have imposed limits on sales of technology. The reason for limitation is the fear that such technologies could be used to commit human rights abuses.

Huawei also has business in Iran where sanctions have only recently been eased.

And now the company’s operations in such countries are being increasingly scrutinized, reports CNBC.

According to a subpoena sent to Huawei, demand has been made to the company to turn over all information regarding the export or re-export of American technology to Cuba, Iran, North Korea, Sudan and Syria. The subpoena was sent by the United States Commerce Department to the company based in the South China city of Shenzhen. Investigations in to whether Huawei broke United States export controls is on and the subpoena is a part of that.

Information related to shipments by the company to those countries over the past five years according to the subpoena that was sent to Huawei’s American headquarters in the Dallas suburb of Plano. Evidence on shipments indirectly or through front or shell companies has also been sought. The company officials were asked to testify last month in Irving, Texas or to provide information before then according to the directions of the subpoena.

Huawei however has not been accused of wrongdoing. It was committed to complying with laws and regulations where it operated, the company said in a statement.

The document is an administrative subpoena, meaning it does not indicate a criminal investigation and was issued by the Commerce Department office that investigates export violations.

The growing discord between the United States and China over control of global communications technology is however exhibited by the scrutiny over Huawei’s dealings with those countries. Also the manner in which the high-stakes of geopolitical contest over cybersecurity and the global management of the internet have pulled in technology companies from both countries is also illustrated by the incident.

The company could be limited in its access to crucial American-made components and other tech products if the investigation finds that Huawei was acting counter to United States national security or foreign policy interests. This could affect the development of cellular networks and other large-scale technology infrastructure projects of the company across the world of the company given Huawei’s size and reach.

“We do not comment with regard to ongoing investigations,” a Commerce Department spokesman said.

In March, sales of American technology to Huawei’s smaller Chinese rival, ZTE, were blocked over similar concerns and this subpoena follows that incident. ZTE documents, released by American officials, showed the Chinese company used a rival’s business efforts in those countries as a model.

The description of the rival matched Huawei even though the rival was not named in the documents.

The United States is going after a much larger target with the new investigation into Huawei. A revenue of about $60 billion, about four times that of ZTE was reported y the company in 2014. it ranks with Ericsson of Sweden as the world’s largest supplier of the base station and other equipment that make mobile telecommunication systems run.

(Adapted from CNBC)

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