News of a broad US investigation by Huawei Technologies Co. on possible sanctions over Iran sanctions intensifies tension over trade as high-ranking US officials drive to China in the coming days in hopes of reaching an agreement ,
Finance Minister Steven Mnuchin, who is expected to be accompanied by US Representative Robert Lighthizer will arrive in Beijing to reach an agreement that would discourage the US from levying duties of up to $ 1
Federal Bureau of Investigation agents, overseen by the US Department of Justice, have investigated transactions by Huawei, China's largest manufacturer of telecommunications equipment. after two people who are familiar with the investigation. Add to that the Office of Foreign Assets Control of the US Treasury Department (OFAC), which imposes sanctions, and the Ministry of Commerce, which also deals with the transactions of the Shenzhen-based mobile and telecommunications giant.
The Huawei The criminal investigation emerged from an earlier investigation of sanctions that eventually led to a punishment against another Chinese technology company, ZTE Corp., said one of the people
Some Huawei suppliers in Asia fell Thursday after the news, with Chinasoft International Ltd stumble as much as 21 percent and Sunny Optical Technology Group Co. drop about 10 percent.
Glenn Castle, a spokesman for Huawei in Shenzhen, declined to comment on the probes. The Company has stated that it complies with all applicable laws and regulations in which it operates, including US export control and sanction laws and regulations, and that it "actively cooperates with government agencies to comply with them.
Huawei's investigation also follows last week's Ministry of Commerce action Ban ZTE, China's second-largest network equipment supplier, buys components from the US as punishment for violating a sanction rule on transactions Iran and North Korea. 19659003] ZTE had previously reached an agreement with the Bureau of Industry and Security of the Ministry of Commerce and pleaded guilty as part of a sanction violation with the Ministry of Justice. ZTE agreed to pay $ 892 million in fines and delays in the Department of Justice's deal, which was the largest US fine at a time against a Chinese company, with additional fines if it failed to comply with the deal.
A According to Bloomberg Intelligence technology analysts Woo Jin Ho and Anand Srinivasan, the discovery of Huawei's misconduct and a similar export ban on US suppliers would, in our view, have a far-reaching impact on various suppliers on a larger scale than peer ZTE ". "Chip suppliers such as Skyworks and Qorvo, which each account for around 10 percent of Huawei's revenue, would be affected, and optical providers such as NeoPhotonics, Oclaro and Lumentum could also be exposed." [Huawei Technologies] $ 50,000 million in 2027 debt fell $ 1.3 to a record 93 cents in the early afternoon in Hong Kong, according to Bloomberg-compiled prices.
A QuickTake Explainer About Huawei
On Wednesday, the company dropped a planned sale of dollars in securities and delayed pricing for a European bid
The Ministry of Commerce in 2016 issued one Subpoena for Huawei for information on sending US technology to rogue states such as Syria, Iran and North Korea
Rival & # 39; F7 & # 39;
Internal ZTE documents released on the website of the US Department of Commerce cited a rival termed only "F7" Equipment for Iran
A group of republican MPs urged the Trump government last April to investigate and identify F7, citing news that underscored the similarities between the company described in the documents and Huawei. Investigations by the FBI and the OFAC on Huawei have been underway since at least the beginning of 2017, according to a person with knowledge of the probes, who asked not to be identified because he was not allowed to discuss the matter.
A Justice Department spokesman declined to comment.
Regardless, the US Federal Communications Commission unanimously voted last week to ban federal funds for the purchase of power supplies from companies posing a national security risk to ZTE and Huawei. The measure has yet to be completed. FCC chairman Ajit Pai called the risk of "hidden backdoors" in routers, switches and other devices "that could allow enemy foreign powers to inject viruses and other malware."
Huawei spokesman said these allegations are not true.
"We are not a security threat in any country," he said. "US authorities should not base government decisions on speculation or rumors – in 30 years, not a single operator has experienced a safety issue with our equipment."
Huawei was founded in 1988 by former Chinese army engineer Ren Zhengfei, raising congressional concerns over the influence Chinese military and government led to the company. In addition to manufacturing networking equipment and other electronics, it was the world's third largest smartphone seller behind Samsung Electronics Co. and Apple Inc. last year
Huawei suffered some setbacks this year in the US. AT & T Inc. and Verizon Communications Inc., the largest US carriers, have given up plans to sell Huawei's latest smartphones. Best Buy Co. stopped selling Huawei phones, laptops and smartwatches
Huawei maintains research and development facilities in Texas, New Jersey, California and four other US states, all of which provide technology for Huawei global operations.
Despite setbacks, Huawei said last month that net income increased by 28 percent in 2017 and that growth in markets from the Middle East to Africa targeted record sales of $ 102.2 billion this year. 19659003] – With support from Greg Farrell, Beth Thomas and Lianting Tu