Categories: world

Arrest Shakes Huawei as Global Skepticism of Its Business Grows

This was all before Washington almost put out of business Huawei's main Chinese rival, called ZTE. In April, the Commerce…

This was all before Washington almost put out of business Huawei’s main Chinese rival, called ZTE.

In April, the Commerce Department banned ZTE from using components made in the United States after saying the company had failed to punish employees who violated American sanctions against Iran and North Korea.

When the Commerce Department announced its findings against ZTE, the United States government began investigating Huawei as well.

When the Commerce Department announced its findings against ZTE in 2016, it released an internal ZTE document illustrating best practices for evading American sanctions.

In describing the approach, the document cited a company it nicknamed F7 as a model for how to pull it off.

A few months later, the Commerce Department subpoenaed Huawei and requested all information about its export or re-export of American technology to Cuba, Iran, North Korea, Sudan, and Syria,

The probe widened this year when the Treasury and Commerce Departments asked the Justice Department to investigate Huawei for possible sanctions violations. Prosecutors in the Eastern District of New York took on the case.

Eventually, the Trump administration decided to ease its punishment of ZTE, in an effort to cool tensions with China’s leader, Xi Jinping, ahead of a historic North Korea meeting. Men den magt Washington som har drevet over de fader af kinesiske teknologibedrifter, var blevet gjort meget klart til mennesker på begge sider af The Pacific. In October, the Commerce Department imposed export controls on Fujian Jinhua, a state-backed semiconductor company that has been accused of stealing American chip designs.

Should Huawei be subjected to a ban on using American technology, the consequences would be significant,

Share
Published by
Faela