According to The Wall Street Journal, the US Department of Justice is looking into whether Huawei violated the country's sanctions against Iran. We don't know the specifics of the investigation, but Huawei could face similar penalties if the government decides it acted improperly.
ZTE was slapped with a seven-year export ban last week by the US Department of Commerce for breaching the settlement terms of violating US sanctions on selling telecoms equipment to Iran and North Korea.
The ban will also impact the business of a number of U.S firms including Qualcomm, Dolby and Acacia Communications.
Huawei spokesman Charles Zinkowski said in a statement that the company "complies with all applicable laws and regulations where it operates, including the applicable export control and sanction laws and regulations of the United Nations, U.S., and European Union". ZTE was accused of violating an agreement to punish employees involved in illegal shipment of U.S. goods to Iran. The company is also the world's No. 3 maker of smartphones. The US Senators have raised concerns against the spread of Chinese technologies in the US and have openly called them part of China's surveillance and counterintelligence mechanism.
The Commerce Department ban was ignited when ZTE admitted in March that while it had fired four senior employees, it had not disciplined or reduced bonuses to 35 others when it said it had. ZTE, the other Chinese company being probed by United States authorities, had said that the investigation could threaten its survival in the US.
In April 2017, lawmakers sent another letter to Commerce Secretary Wilbur Ross asking for F7 to be publicly identified and fully investigated.
Without the ban, the company believes its annualized revenue with ZTE and its supply chain partners would have grown up to 5 percent, but the expectation "will not be realized", the company said.
The Chinese company came under US pressure in 2012 when a congressional report concluded both Huawei and ZTE could become a tool for state-sponsored spying or sabotage. In January 2013, Reuters reported that a Hong Kong-based firm that attempted to sell embargoed Hewlett-Packard computer equipment to Iran's largest mobile-phone operator has much closer ties to China's Huawei Technologies than was previously known.