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Huawei Has Suspected Ties To Front Companies In Iran and Syria, New Documents Reveal (reuters.com)

Posted by BeauHD on from the behind-the-scenes dept.

An anonymous reader quotes a report from Reuters: The U.S. case against the chief financial officer of China's Huawei Technologies, who was arrested in Canada last month, centers on the company's suspected ties to two obscure companies. One is a telecom equipment seller that operated in Tehran; the other is that firm's owner, a holding company registered in Mauritius. U.S. authorities allege CFO Meng Wanzhou deceived international banks into clearing transactions with Iran by claiming the two companies were independent of Huawei, when in fact Huawei controlled them. Huawei has maintained the two are independent: equipment seller Skycom Tech Co Ltd and shell company Canicula Holdings Ltd. But corporate filings and other documents found by Reuters in Iran and Syria show that Huawei, the world's largest supplier of telecommunications network equipment, is more closely linked to both firms than previously known.

The documents reveal that a high-level Huawei executive appears to have been appointed Skycom's Iran manager. They also show that at least three Chinese-named individuals had signing rights for both Huawei and Skycom bank accounts in Iran. Reuters also discovered that a Middle Eastern lawyer said Huawei conducted operations in Syria through Canicula. Huawei, U.S. authorities assert, retained control of Skycom, using it to sell telecom equipment to Iran and move money out via the international banking system. As a result of the deception, U.S. authorities say, banks unwittingly cleared hundreds of millions of dollars of transactions that potentially violated economic sanctions Washington had in place at the time against doing business with Iran.

6 of 108 comments (clear)

  1. This is something to be proud of in China by butchersong · · Score: 2, Insightful

    Chinese see getting away with this as an admirable trait. If you get caught you lose face but... setting up a situation like this is like chum in the water to chinese businesses.

    1. Re:This is something to be proud of in China by times05 · · Score: 2, Insightful

      Getting away with what? Trading with with Iran, country that China has no sanctions against?

      Why should China give a frog's fart about US sanctions? Especially after US unilaterally broke its treaty with Iran.

      It's like a bully trying to pick on someone, then he glances back and sees all his "flunkies"/"followers"/"buddies" are staying out of it. He's on his own. Feeling a bit of panic, maybe some cold sweat coming on bully?

    2. Re:This is something to be proud of in China by times05 · · Score: 4, Insightful

      If China wants to do something that's perfectly legal for them, US law doesn't "trump" it, even if that happens to be US president's name.

      If it's any consolation, US retains the right to be salty about it, maybe break some agreements or something with China, but common.... we all know agreements with US aren't worth the ink or paper they're written with/on, as evidenced by their breaking of agreement with Iran anyway.

    3. Re:This is something to be proud of in China by tlhIngan · · Score: 3, Insightful

      If China wants to do something that's perfectly legal for them, US law doesn't "trump" it, even if that happens to be US president's name.

      Depends on the technology licenses. If that equipment contained any US export controlled technology, then yes heads will roll.

      After all, ZTE was basically given the death sentence by being barred from buying US technology for re-selling the technology to restricted countries. At least, until the President was handed some half billion dollars of "investment" and China granting them rare and valuable trademark protection. Not just one, but several more later on.

  2. The Chinese communist party by WCMI92 · · Score: 3, Insightful

    Is the real owner here. Any company that does business with China is subsidizing one of the most evil governments of all time. The ChiCom government is responsible for the mass murder of millions.

    --
    Corporatism != Free Market
  3. Ermagerd, international corp sells internationally by Uberbah · · Score: 3, Insightful

    Just imagine if this critical eye was aimed at, say, American arms dealers. Or the Bush and Clinton families. Or all the high profile politicians like Howard Dean and Tom Ridge who have been PR flacks for groups on the State Department's list as terrorists:

    https://www.salon.com/2012/02/...