Justice Department investigating Huawei for violating U.S. sanctions on Iran

Justice Department investigating Huawei for violating U.S. sanctions on Iran
According to the Wall Street Journal, the U.S. Department of Justice is investigating Chinese phone manufacturer and network supplier Huawei. The company already caught the attention of the U.S. government back in 2012 for its rumored ties with the Chinese government. Earlier this year, U.S. officials warned Americans not to buy Huawei devices for fear that they could spy on U.S. consumers and corporations. Big box electronics retailer Best Buy said last month that it would stop selling Huawei smartphones.

Today's report says that the Justice Department investigation deals with allegations that Huawei violated U.S. sanctions against Iran. ZTE, which has also been linked to the Chinese government and possible espionage issues, was found guilty last year of sending goods and services to Iran and North Korea, and fined $1.19 billion. The company failed to comply with the punishment set forth by the U.S. Commerce Department and now is banned from receiving U.S. exports until March 2025. That is a crippling blow to ZTE's smartphone business since it could leave them without the ability to source Snapdragon chipsets and the Android operating system. The Wall Street Journal says that the worse-case scenario facing Huawei is a similar U.S. export ban.

Both Huawei, which is the third largest smartphone manufacturer in the world, and ZTE, deny that they are a national security threat to the U.S. A Huawei spokesman pointed out that smartphone producers share the same suppliers, which he uses as proof that Huawei phones are no riskier than its competitors' handsets. That is a dubious claim considering that Huawei phones use their own home-grown Kirin chipsets and Android skin.

Despite all of this, there are consumers who would prefer that they had the opportunity to snag Huawei's current top-shelf model, the P20 Pro. The company is not offering the device in the states. A recent poll taken by PhoneArena revealed that a majority (50.67%) of those responding said that they would purchase the device if given the chance. Only 16.14% said that privacy concerns would keep them from buying the phone.

source: WSJ

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14 Comments

1. mootu

Posts: 1527; Member since: Mar 16, 2017

The US Gov does not control who Huawei sells to, they do not operate out of the US and Huawei can do whatever they please. Are they going to go after Samsung as well as they are the leading supplier of phones in Iran with 51% of the market and are sold with the Android OS which breaks the US sanctions, i seriously doubt the US Gov will say $hit about that.

2. sgodsell

Posts: 7417; Member since: Mar 16, 2013

I think the US government is doing this also to help out Apple, especially when Huawei's growth is looking like it was going to displace Apples place in the global market, and set back Apple to third spot. Donald Trump and Tim Cook are having a meeting at the White House this week.

11. Awalker

Posts: 1981; Member since: Aug 15, 2013

All of this seems suspicious to me since other countries are not taking similar action against Huawei.

18. GalaxyLeads_iCrapFollows

Posts: 216; Member since: Nov 29, 2017

That's because the US is not dumb enough to mess with Samsung as they know they NEED Samsung and there is everything to lose to go against Samsung. Samsung components are found in about every single US made or any electronic product in the world. Without Samsung there could not be iphones so in really US companies are at Samsung's mercy. On the contrary, the chinese companies are simply competition that are at the US and everybody elses' mercy and the US does not depend on them so the US can f*k with them all they want and have nothing to lose but all to gain. In fact, chinese companies are like a flock of annoying pigeons searching for bread crumbs leftover by Apple, Samsung, and others and pooping all over the place while at it. Better to keep them out before they infest your country with low quality products causing confusion to your consumers.

4. Good-Is-Better

Posts: 105; Member since: Nov 12, 2015

Huawei does not use US chips and is being constantly bash from the US market. Huawei has survived for long without the US markets. Of what important is this investigations? Ban Huawei from the US, it wouldn't be noticed.

5. Subie

Posts: 2378; Member since: Aug 01, 2015

Huawei does use some Qualcomm chips as well as Google's Android OS. So if they do receive a US export ban it will definitely be noticed.

7. mootu

Posts: 1527; Member since: Mar 16, 2017

EMUI is built on the AOSP and is not owned by Google. Though they could be stopped from using Google services such as Playstore etc which would be bad.

8. Subie

Posts: 2378; Member since: Aug 01, 2015

Samsung experience isn't owned by google either but the Android base is. Samsung would have to go to Tizen to get away from Google's OS. Huawei's devices are definitely using Android, and EMUI is their overlaid user interface or skin on top of it. https://www.xda-developers.com/huawei-emui-8-0-devices-android-oreo/ https://en.wikipedia.org/wiki/Huawei_EMUI

14. mootu

Posts: 1527; Member since: Mar 16, 2017

You are not getting what i'm saying. EMUI is built on AOSP (android open source project) with Google apps added (except in China) AOSP is led by Google but they do not own it and cannot stop anyone from using it, it was built to stop any one player in the industry stopping anyone else from using it. All the US Gov could do is ban the use of Google apps, not the use of Android itself as it open souced and based on the Linux kernel which cannot be "owned". It's hard to explain, but anyone can use Android (AOSP) and no one can stop them.

16. Subie

Posts: 2378; Member since: Aug 01, 2015

If you're right then ZTE has nothing to worry about either, and Matthew Mills article here is most likely wrong... Other sites also have been reporting the same thing. https://www.phonearena.com/news/ZTE-may-lose-Android_id104170

17. mootu

Posts: 1527; Member since: Mar 16, 2017

Oh they have everything to worry about. I will try and explain it another way. Google did not buy the Android code, they bought the trademark. Android is forked in 2, Theres Android AOSP this is the original Android code that anyone can use, it is maintained by Google but it is not owned by Google as it's open source, think of Google as the care taker if you like but anyone can develop with it, alter it in any way they like and nobody can stop them. You, me, my dog, anyone. AOSP is the part of Android the Chinese (and Indian) OEM's build on to create things like EMUI, MIUI, FLYME etc and no one can stop that. The 2nd part of Android is Android GMS this the Google Mobile Services and is what Google licences out to OEM's. This is the part that the US Gov could ban and Huawei & ZTE would not be able to use Googles services or API's. While this wouldn't really effect the Chinese market it would be disastrous for sales in Europe and other areas. So ZTE & Huawei would not lose their OS's they would lose the right to access all google services. At the end of the day Google doesn't want or need any of this, it's business model depends on it's services being on as many devices as humanly possible.

9. Subie

Posts: 2378; Member since: Aug 01, 2015

Samsung experience isn't owned by google either but the Android base is. Samsung would have to go to Tizen to get away from Google's OS. Huawei's devices are definitely using Android, and EMUI is their overlaid user interface or skin on top of it. https://www.xda-developers.com/huawei-emui-8-0-devices-android-oreo/ https://en.wikipedia.org/wiki/Huawei_EMUI

13. SIGPRO

Posts: 2817; Member since: Oct 03, 2012

U.S. Wants to control everyone. They want to show balls but in fact their balls are tiny!

15. zennacko unregistered

Free commerce and global open markets... only if the president says so.

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