The US Justice Department has joined two other agencies probing Huawei Technologies for possible violations of sanctions banning sales to Iran, according to two people familiar with the matter.
Agents from the Federal Bureau of Investigation, which is overseen by the Justice Department, have been looking into transactions by the Shenzhen, China-based mobile and telecommunications giant, the people said. According to one of them, the criminal inquiry grew out of an earlier sanctions-violation probe that ultimately led to penalties against another Chinese technology company, ZTE.
The US Treasury Department’s Office of Foreign Assets Control, or OFAC, which enforces sanctions, and the Department of Commerce are also looking into Huawei’s transactions. The Commerce Department in 2016 issued an administrative subpoena aimed at Huawei, China’s largest maker of telecommunications equipment, seeking information about whether it was sending US technology to rogue nations including Syria, Iran and North Korea.
Earlier this month, the Commerce Department banned ZTE, China’s second-biggest network equipment maker, from buying US-made components as punishment for violating a sanctions settlement over transactions with Iran and North Korea. ZTE had previously reached a settlement with the Commerce Department’s Bureau of Industry and Security, and pleaded guilty as part of a sanctions-violations agreement with the Justice Department. ZTE agreed to pay $892 million in fines and forfeitures in the Justice Department deal, at the time the largest US criminal fine against a Chinese company, with additional fines if it failed to comply with the deal.
Internal ZTE documents posted on the Commerce Department website cited a rival, referred to only as “F7,” as also violating US export controls in sales of equipment to Iran.
A group of Republican lawmakers pushed the Trump administration last April to investigate and identify F7, citing news reports that have highlighted the similarities between the company described in the documents and Huawei. The FBI and OFAC investigations into Huawei have been going on since at least early 2017, according to one of the people with knowledge of the probes, who asked not to be identified because he isn’t authorised to speak about the matter.
A finding of wrongdoing by Huawei and a similar US supplier export ban "would have wide ramifications on various suppliers on a larger scale than peer ZTE, in our view," according to Bloomberg Intelligence technology analysts Woo Jin Ho and Anand Srinivasan. "Chip suppliers such as Skyworks and Qorvo, each with about 10 per cent sales exposure to Huawei, would be affected. Optical suppliers including NeoPhotonics, Oclaro and Lumentum may also be exposed."
Some Huawei suppliers in Asia slid after the news, with Chinasoft International tumbling as much as 21 per cent and Sunny Optical Technology Group fell 7.4 per cent.
Huawei Technologies’ $500 million of 2027 notes fell 0.9 cents on the dollar to a record low of 93.2 cents in Hong Kong trading. Its bonds are the worst performers in the Bloomberg Barclays Asia dollar bond index Thursday.
Glenn Schloss, a spokesman for Huawei in Shenzhen, declined to comment about the probes. The company has said it complies with all applicable laws and regulations where it operates, including US export controls and sanctions laws and regulations, and that it “actively cooperates” with government agencies regarding its compliance.
A spokesman for the Justice Department declined to comment.
Separately, the US Federal Communications Commission voted unanimously last week to ban federal funds from being used to purchase networking gear from companies determined to be a national security risk, dealing another blow to ZTE and Huawei. The measure has yet to be finalised. FCC Chairman Ajit Pai cited the risk of “hidden ‘back doors’ to our networks in routers, switches and other equipment” that could “allow hostile foreign powers to inject viruses and other malware.”
Mr Schloss, the Huawei spokesman, said those allegations aren’t true.
“We pose no security threat in any country,” he said. “US authorities should not base government decisions on speculation or rumor. In 30 years, not a single operator has experienced a security issue with our equipment.”
Huawei was founded in 1988 by former Chinese army engineer Ren Zhengfei, leading to congressional concerns over Chinese military and government influence at the company. In addition to producing networking gear and other electronics, it was the globe’s No. 3 smartphone seller last year behind Samsung and Apple.
Huawei has faced several setbacks in the US this year. AT&T and Verizon Communications, the biggest US carriers, dropped plans to sell Huawei’s latest smartphones. Then, consumer electronics retailer Best Buy stopped selling Huawei phones, laptops and smartwatches.
Earlier Wednesday, the company dropped a planned dollar-denominated bond sale and delayed pricing a European offering.
Huawei maintains research and development facilities in Texas, New Jersey, California and four other US states, all of which provide technology for Huawei’s global operations.
Despite the setbacks, Huawei said last month that 2017 net income rose 28 per cent and that growth in markets from the Middle East to Africa have it targeting record sales of $102.2 billion this year.
Joker: Folie a Deux
Starring: Joaquin Phoenix, Lady Gaga, Brendan Gleeson
Director: Todd Phillips
Rating: 2/5
A list of the animal rescue organisations in the UAE
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The Little Things
Directed by: John Lee Hancock
Starring: Denzel Washington, Rami Malek, Jared Leto
Four stars
Zayed Sustainability Prize
'Skin'
Dir: Guy Nattiv
Starring: Jamie Bell, Danielle McDonald, Bill Camp, Vera Farmiga
Rating: 3.5/5 stars
Moon Music
Artist: Coldplay
Label: Parlophone/Atlantic
Number of tracks: 10
Rating: 3/5
The%20Woman%20King%20
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The specs: 2018 Genesis G70
Price, base / as tested: Dh155,000 / Dh205,000
Engine: 3.3-litre, turbocharged V6
Gearbox: Eight-speed automatic
Power: 370hp @ 6,000rpm
Torque: 510Nm @ 1,300rpm
Fuel economy, combined: 10.6L / 100km
Milestones on the road to union
1970
October 26: Bahrain withdraws from a proposal to create a federation of nine with the seven Trucial States and Qatar.
December: Ahmed Al Suwaidi visits New York to discuss potential UN membership.
1971
March 1: Alex Douglas Hume, Conservative foreign secretary confirms that Britain will leave the Gulf and “strongly supports” the creation of a Union of Arab Emirates.
July 12: Historic meeting at which Sheikh Zayed and Sheikh Rashid make a binding agreement to create what will become the UAE.
July 18: It is announced that the UAE will be formed from six emirates, with a proposed constitution signed. RAK is not yet part of the agreement.
August 6: The fifth anniversary of Sheikh Zayed becoming Ruler of Abu Dhabi, with official celebrations deferred until later in the year.
August 15: Bahrain becomes independent.
September 3: Qatar becomes independent.
November 23-25: Meeting with Sheikh Zayed and Sheikh Rashid and senior British officials to fix December 2 as date of creation of the UAE.
November 29: At 5.30pm Iranian forces seize the Greater and Lesser Tunbs by force.
November 30: Despite a power sharing agreement, Tehran takes full control of Abu Musa.
November 31: UK officials visit all six participating Emirates to formally end the Trucial States treaties
December 2: 11am, Dubai. New Supreme Council formally elects Sheikh Zayed as President. Treaty of Friendship signed with the UK. 11.30am. Flag raising ceremony at Union House and Al Manhal Palace in Abu Dhabi witnessed by Sheikh Khalifa, then Crown Prince of Abu Dhabi.
December 6: Arab League formally admits the UAE. The first British Ambassador presents his credentials to Sheikh Zayed.
December 9: UAE joins the United Nations.
Super%20Mario%20Bros%20Wonder
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Other must-tries
Tomato and walnut salad
A lesson in simple, seasonal eating. Wedges of tomato, chunks of cucumber, thinly sliced red onion, coriander or parsley leaves, and perhaps some fresh dill are drizzled with a crushed walnut and garlic dressing. Do consider yourself warned: if you eat this salad in Georgia during the summer months, the tomatoes will be so ripe and flavourful that every tomato you eat from that day forth will taste lacklustre in comparison.
Badrijani nigvzit
A delicious vegetarian snack or starter. It consists of thinly sliced, fried then cooled aubergine smothered with a thick and creamy walnut sauce and folded or rolled. Take note, even though it seems like you should be able to pick these morsels up with your hands, they’re not as durable as they look. A knife and fork is the way to go.
Pkhali
This healthy little dish (a nice antidote to the khachapuri) is usually made with steamed then chopped cabbage, spinach, beetroot or green beans, combined with walnuts, garlic and herbs to make a vegetable pâté or paste. The mix is then often formed into rounds, chilled in the fridge and topped with pomegranate seeds before being served.
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%3Cp%3E%3Cstrong%3EDirector%3A%20%3C%2Fstrong%3EJames%20Gunn%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStars%3A%3C%2Fstrong%3E%20Chris%20Pratt%2C%20Zoe%20Saldana%2C%20Dave%20Bautista%2C%20Vin%20Diesel%2C%20Bradley%20Cooper%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%204%2F5%3C%2Fp%3E%0A
COMPANY%20PROFILE%20
%3Cp%3E%3Cstrong%3ECompany%20name%3A%20%3C%2Fstrong%3EAlmouneer%3Cbr%3E%3Cstrong%3EStarted%3A%3C%2Fstrong%3E%202017%3Cbr%3E%3Cstrong%3EFounders%3A%3C%2Fstrong%3E%20Dr%20Noha%20Khater%20and%20Rania%20Kadry%3Cbr%3E%3Cstrong%3EBased%3A%20%3C%2Fstrong%3EEgypt%3Cbr%3E%3Cstrong%3ENumber%20of%20staff%3A%20%3C%2Fstrong%3E120%3Cbr%3E%3Cstrong%3EInvestment%3A%20%3C%2Fstrong%3EBootstrapped%2C%20with%20support%20from%20Insead%20and%20Egyptian%20government%2C%20seed%20round%20of%20%3Cbr%3E%243.6%20million%20led%20by%20Global%20Ventures%3Cbr%3E%3C%2Fp%3E%0A
TRAP
Starring: Josh Hartnett, Saleka Shyamalan, Ariel Donaghue
Director: M Night Shyamalan
Rating: 3/5
Greatest of All Time
Starring: Vijay, Sneha, Prashanth, Prabhu Deva, Mohan
COMPANY%20PROFILE
%3Cp%3ECompany%20name%3A%20Znap%3C%2Fp%3E%0A%3Cp%3EStarted%3A%202017%3C%2Fp%3E%0A%3Cp%3EFounder%3A%20Uday%20Rathod%3C%2Fp%3E%0A%3Cp%3EBased%3A%20Dubai%2C%20UAE%3C%2Fp%3E%0A%3Cp%3EIndustry%3A%20FinTech%3C%2Fp%3E%0A%3Cp%3EFunding%20size%3A%20%241m%2B%3C%2Fp%3E%0A%3Cp%3EInvestors%3A%20Family%2C%20friends%3C%2Fp%3E%0A
The specs
Engine: 2.0-litre 4-cyl, 48V hybrid
Transmission: eight-speed automatic
Power: 325bhp
Torque: 450Nm
Price: Dh289,000
Biog:
Age: 34
Favourite superhero: Batman
Favourite sport: anything extreme
Favourite person: Muhammad Ali
THE SPECS
Aston Martin Rapide AMR
Engine: 6.0-litre V12
Transmission: Touchtronic III eight-speed automatic
Power: 595bhp
Torque: 630Nm
Price: Dh999,563
DIVINE%20INTERVENTOIN
%3Cp%3EStarring%3A%20Elia%20Suleiman%2C%20Manal%20Khader%2C%20Amer%20Daher%3C%2Fp%3E%0A%3Cp%3EDirector%3A%20Elia%20Suleiman%3C%2Fp%3E%0A%3Cp%3ERating%3A%204.5%2F5%3C%2Fp%3E%0A
Pathaan
%3Cp%3E%3Cstrong%3EDirector%3A%3C%2Fstrong%3E%20Siddharth%20Anand%C2%A0%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStars%3A%3C%2Fstrong%3E%20Shah%20Rukh%20Khan%2C%20Deepika%20Padukone%2C%20John%20Abraham%C2%A0%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%203%2F5%3C%2Fp%3E%0A
COMPANY PROFILE
Name: HyperSpace
Started: 2020
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
Based: Dubai, UAE
Sector: Entertainment
Number of staff: 210
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners
The specs
Engine: 1.5-litre turbo
Power: 181hp
Torque: 230Nm
Transmission: 6-speed automatic
Starting price: Dh79,000
On sale: Now
Jigra
Starring: Alia Bhatt, Vedang Raina, Manoj Pahwa, Harsh Singh
CHELSEA'S NEXT FIVE GAMES
Mar 10: Norwich(A)
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