New Evidence Shows That Huawei Illegally Sold Equipment Worth $10 Million to Iran

Mar 2, 2020 13:34 EST
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Last year, the US government imposed a trade ban on Huawei, forbidding any US-based companies from trading with the Chinese behemoth. It was based on allegations that Huawei used its telecommunications infrastructure to spy on the US and sell trade secrets to countries like Iran. Although there was no proof such activities found at the time, new evidence has emerged that Huawei did indeed sell equipment to Iran. The information came to light after some of Huawei's internal communications from 2010 were made public.

Huawei allegedly used another company as a front to avoid scrutiny

According to a report by Reuters, Huawei sold over $10 million worth of goods to an Iranian company. The goods included computer equipment made by Hewlett-Packard, which were sold to Iran's largest mobile carrier called MCI and MCCI. It also included servers, switches and other equipment made by HP and software from companies such as Microsoft, Symantec, and Novell.

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The report further adds that Panda International Information Technology Co, a company closely linked with Huawei, also engaged in similar practices and suppled the Iranian telco with equipment and software. Huawei may have used Panda International as a front to purchase and ship the equipment to avoid scrutiny. This is something Huawei has been doing for years, according to Reuter's analyst, who is familiar with the issue. An HP spokesperson told Reuters in a statement:

“Our contract terms prohibited the sale of these products to Iran, and required that our partners comply with all applicable export laws and regulations. This remains true today

Microsoft, Symantec, and Novell software didn’t respond to a request for comment. A Huawei spokesperson said that the company could not comment on the issue due to the ongoing investigation against it. MCI, Panda International, and other parties involved in the deal also refused to comment.

This new information should strengthen the US government's case against Huawei. It has repeatedly asked its allies to stop using Huawei equipment in their 5G infrastructure.

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