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US suspected Huawei of violating sanctions against Iran

UNITED STATES (OBSERVATORY) – The US Department of Justice is conducting an investigation into the potential violation of Chinese sanctions by Huawei against Iran, sources told The Wall Street Journal.

So far there is no information about the stage at which the investigation is being conducted. Huawei does not comment on this information.

The increased interest of the US Justice Department can create additional difficulties for Huawei in conditions when the American market is already eschewing Chinese manufacturers of telecommunications equipment for reasons of national security. Earlier in April, US authorities introduced a seven-year ban on the purchase of Chinese technology and ZTE’s products by American manufacturers of smartphones and network equipment.

Washington’s actions have already limited business opportunities in the US and for Huawei, and American influence may be enough to create barriers to Huawei’s activities in other regions, especially in Europe.

Attacks on Chinese technology companies worsen relations between the US and China, which are already overshadowed by large-scale trade disputes.

The administration of the US president has already called Huawei a threat to American leadership in the race for the creation of mobile technologies of the future. Huawei is the world’s largest manufacturer of electronics for cellular towers and other equipment, and also ranks third in the production of smartphones, second only to Apple Inc. and Samsung Electronics Co.

According to the Dell’Oro Group, in 2017, Huawei controlled 27% of the world telecommunications equipment market, and ZTE ranked 4th (10%). At the same time, the share of these companies in the US market is less than 1%, and the leaders are Finnish Nokia and Swedish Ericsson – 48% each.