Huawei allegedly violated Iran sanctions and could face criminal penalties

Huawei has had quite a rough year. It started 2018 optimistic, with plans to enter the United States market with partners AT&T and Verizon. As you may know, these plans dissolved amid pressure from the U.S. government. As if things couldn't get worse for the company, it looks like the Justice Department is now investigating whether the firm violated U.S. sanctions against Iran and could face criminal penalties.

The U.S. sanctions violation is what initially got ZTE in trouble last year and ultimately led to the company being banned from purchasing components from companies in the U.S. At the moment, it is unknown just how far the Justice Department has probed and what is being alleged of Huawei. The company more recently seemed to give up its efforts in the U.S., changing focus to regions like Europe and Asia. If the new investigation reveals wrongdoings, it could further place the company's limited ties in the U.S. and other parts of the world in jeopardy.

With these recent events, China is now looking into ways to speed up its own chip manufacturing in order to decrease its reliance on U.S. based companies. Luckily for Huawei, the company already manufactures its own processors but its future is not looking bright at the moment.

Source: The Wall Street Journal (Paywall)

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