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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.

45 of 108 comments (clear)

  1. ALL Chinese-gov owned companies by Anonymous Coward · · Score: 1

    It's not just Huawei doing shit like this, ALL Chinese-government owned companies have tentacles like this.

    1. Re:ALL Chinese-gov owned companies by ArhcAngel · · Score: 1

      It's not just Huawei doing shit like this, ALL 3 letter-government agencies have tentacles like this.

      FTFY

      --
      "A person is smart. People are dumb, panicky dangerous animals and you know it." - K
  2. 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 fred6666 · · Score: 4, Informative

      China can (and does) trade with Iran. The problem is corporations/individuals doing so can't also trade with the USA. Huawei did. The other execs shouldn't step a foot in any country with extradition treaty with the USA.

    3. Re: This is something to be proud of in China by Anonymous Coward · · Score: 1

      What about US culture then? Given that they arrested a Chinese individual working for a Chinese company for not following a US sanction?
       
      If the US has a beef with Huawei, they should at least sanction the company or ban their products, instead of taking it out on an an individual working fo the company that just happened to be abroad.
       
      Also, if the US had followed the international treaties they themselves signed with Iran, this wouldn't even be a topic for discussion. But I guess you don't think it's criminal culture to go back on your promises whenever you change your mind?

    4. 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.

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

      Why does US try to do business and travel through China if they sanction Chinese trade partners? What gives them the right?

      Go ahead, tell me about your superiority and how you can do things that others aren't allowed to do Adolf.

    6. Re: This is something to be proud of in China by Anonymous Coward · · Score: 1

      Sanctions donâ(TM) have power. They rarely (never?) get the intended results, but they do hurt the ordinary people of the targeted country. It makes the impotent feel like theyâ(TM)re doing something though.

    7. 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.

    8. Re:This is something to be proud of in China by WindBourne · · Score: 4, Informative

      This was not about America telling them that they were under sanctions.
      This was about Huawei buying American parts after promising to NOT sell them to a number of nations, including Iran/Syria.
      Then they turned around and have worked hard to hide the fact that they are not just selling the parts to Iran, but working with them and syria, etc to use it against the west.

      --
      I prefer the "u" in honour as it seems to be missing these days.
    9. Re:This is something to be proud of in China by WindBourne · · Score: 1

      Huawei is not only publically traded in China, but all their CHinese employees own stock in them. Of course, none of the foreign employees are given stock and more importantly,only CHinese are allowed to buy the stock on their market.

      --
      I prefer the "u" in honour as it seems to be missing these days.
    10. Re: This is something to be proud of in China by WindBourne · · Score: 2

      I agree with you, except that the woman is in the crux of it all. She signed the paper work saying that they were not working with iran and then it turns out she is controlling the very company. I do not agree with our arresting her, but ....
      I will say that instead of going after her, I think that we just need to cut off Huwei and ZTE and prohibit anybody from giving them western parts. If China complains about it, too bad. The Chinese gov is obviously using these 2 to attack the west with.

      --
      I prefer the "u" in honour as it seems to be missing these days.
    11. Re:This is something to be proud of in China by Aighearach · · Score: 1

      Spoiler:

      It did. That's why she was arrested and is awaiting extradition.

    12. Re:This is something to be proud of in China by Anonymous Coward · · Score: 2

      My understanding is that if they DID defraud an entity, it wasn't a US entity, but rather HSBC. Unless Meng was speaking with an HSBC US entity, I'm not sure this can be considered "trading" with the US, but simply an international entity.

      But none of this really matters, but it's simply not normal to seek criminal prosecution for what she supposedly did... A large fine, yes, but not jail time.

      ------------
      "Meng is charged with violating US sanctions on Iran. Yet consider her arrest in the context of the large number of companies, US and non-US, that have violated US sanctions against Iran and other countries. In 2011, for example, JP Morgan Chase paid $88.3 million in fines in 2011 for violating US sanctions against Cuba, Iran, and Sudan. Yet Jamie Dimon wasn’t grabbed off a plane and whisked into custody.

      And JP Morgan Chase was hardly alone in violating US sanctions. Since 2010, the following major financial institutions paid fines for violating US sanctions: Banco do Brasil, Bank of America, Bank of Guam, Bank of Moscow, Bank of Tokyo-Mitsubishi, Barclays, BNP Paribas, Clearstream Banking, Commerzbank, Compass, Crédit Agricole, Deutsche Bank, HSBC, ING, Intesa Sanpaolo, JP Morgan Chase, National Bank of Abu Dhabi, National Bank of Pakistan, PayPal, RBS (ABN Amro), Société Générale, Toronto-Dominion Bank, Trans-Pacific National Bank (now known as Beacon Business Bank), Standard Chartered, and Wells Fargo.

      None of the CEOs or CFOs of these sanction-busting banks was arrested and taken into custody for these violations. In all of these cases, the corporation – rather than an individual manager – was held accountable. Nor were they held accountable for the pervasive lawbreaking in the lead-up to or aftermath of the 2008 financial crisis, for which the banks paid a staggering $243 billion in fines, according to a recent tally. In light of this record, Meng’s arrest is a shocking break with practice. Yes, hold CEOs and CFOs accountable, but start at home in order to avoid hypocrisy, self-interest disguised as high principle, and the risk of inciting a new global conflict."

    13. Re:This is something to be proud of in China by AmiMoJo · · Score: 1

      That's going to backfire in the next year or two. The Chinese have realized this is a big vulnerability and resolved to build the next generation of cellular hardware in China, using Chinese developed tech implementing Chinese patents.

      Essentially the US just signalled to the rest of the world not to rely on US tech exports. China was already looking to dominate 5G, or at the very least make sure that it could supply all the necessary parts domestically.

      --
      const int one = 65536; (Silvermoon, Texture.cs)
      SJW, n: "Someone I don't like, and by the way I'm a fuckwit" - AC
  3. Take out the hostage card! by hackingbear · · Score: 2

    Looks like someone can't get any succession from trade talks in Beijing.

    In the other news, Iraq is suspected to possess large amount of Weapons of Mass Destruction.

    1. Re:Take out the hostage card! by Anonymous Coward · · Score: 1

      The "hostage" is under house arrest in Canada currently.

      Speaking of hostages, China has been grabbing many of its own on a regular basis and, in their case, they are quite literally hostages rather than white collar criminals on this scale (I added "on this scale" because I wouldn't put it past a lot of people doing business in China to be quite willing to take liberties with legalities).

    2. Re: Take out the hostage card! by Type44Q · · Score: 1

      Looks like someone can't get any succession from trade talks in Beijing.

      Looks like Chinese shills can't speak English correctlly.

      It's so funny that it's almost sad.

    3. Re:Take out the hostage card! by AmiMoJo · · Score: 1

      The comments on stories about China are always the same.

      - The Chinese are dishonourable, screwing foreigners over is part of their culture!
      - All Chinese tech is stolen, they have spies in the US pretending to be workers!
      - All Chinese tech has government mandated backdoors and spies on you!
      - China's human rights record means we should have nothing to do with them!*

      * You can still buy an iPhone though, for some reason that's fine.

      --
      const int one = 65536; (Silvermoon, Texture.cs)
      SJW, n: "Someone I don't like, and by the way I'm a fuckwit" - AC
    4. Re:Take out the hostage card! by DarkOx · · Score: 1

      This is the big problem and its really big nasty whole in our FP. Its hard to take anything people like Susan Power or Bolton for that matter say seriously about higher moral callings while we do nothing about the Chinese and would curtail our relationship with them.

      Basically I say either we DO something about China for human rights / moral reasons and cut them off or else we need to just stop pretending we are doing anything other than modernized mercantilism.

      --
      Repeal the 17th Amendment TODAY! Also Please Read http://www.gnu.org/philosophy/right-to-read.html
    5. Re:Take out the hostage card! by AmiMoJo · · Score: 1

      What could you actually do though? Surely not regime change, they have ICBMs.

      China is slowly liberalizing and improving its record. Part of that is due to increase scrutiny from the west, and because we demand higher standards in order to do business with them. RoHS is a good example, it cleaned up a lot of Chinese manufacturing despite only being a legal requirement for goods sold in the EU.

      The best way to promote human rights and improve things in China is probably to do business with China, while constantly pushing for higher and higher standards. If we require the workers in Chinese factories making products for western companies to have worker's rights and reasonable conditions then it means their rights are being respected to a much greater extent, and leads to wider changes. We are now at the point where companies like to show off the working conditions and clean, tidy factories when advertising their goods and services, i.e. working conditions have become a selling point.

      I'd welcome efforts to do more and make it happen faster, but I don't think "getting tough" is likely to so anything other than make them disengage.

      --
      const int one = 65536; (Silvermoon, Texture.cs)
      SJW, n: "Someone I don't like, and by the way I'm a fuckwit" - AC
  4. in other news by zlives · · Score: 1

    what ever happened with iran contra trials

    1. Re:in other news by jeff4747 · · Score: 1

      Several convictions. Followed by several pardons.

      It's amazing what you can get away with on Christmas day in 1992, when re-election is no longer an issue.

    2. Re:in other news by zlives · · Score: 1

      true, my point however was more to do with Govt. posturing and denial. nothing new to see here :)

  5. FTFY by Anonymous Coward · · Score: 1

    I believe you meant to say "Whattabout" the unrelated 30+ year old issue you're bringing up now to distract, right? Stick to the script, the handlers wrote it carefully.

    1. Re:FTFY by hackingbear · · Score: 1

      I believe you meant to say "Whattabout" the unrelated 30+ year old issue you're bringing up now to distract, right? Stick to the script, the handlers wrote it carefully.

      "Whattabout" hypocrisy.

  6. Re:Hey look it's Ivan-Hackingbear with more FUD by times05 · · Score: 1

    Ivan doesn't promote that sort of thing, quite the opposite. As a rule people that don't like Ivan are into that. They even blame Ivan of being homophobic at times.

  7. Re:Hey look it's Ivan-Hackingbear with more FUD by hackingbear · · Score: 1

    Hey look it's Ivan-Hackingbear with more FUD

    More FUD on WMDs? Absolutely!

  8. Re:"a Middle Eastern lawyer" by times05 · · Score: 1

    In other news, our Saudi friends and allies have made great strides in women's rights and equality.

    No longer will a woman sit there wondering where her husband is after he decides to divorce her without saying anything. As of last week courts will be required to send notification text message to wife's phone, to tell her that she's been divorced. Now that's what I call progress!

  9. Get fucked China. by Anonymous Coward · · Score: 1

    It's actually crimes WELL beyond US sanctions. It's fraud to facilitate violating those sanctions. Huawei wants to sell to US, its allies and partners, and violate our laws. Nope! You have to pay the piper one way or another.

    Get fucked China.

    1. Re:Get fucked China. by times05 · · Score: 1

      So either A) stop buying from China or B) stuff it.

      Oh right... look under the keyboard you're typing on, where is it made?.... Option B it is then.

    2. Re: Get fucked China. by Type44Q · · Score: 1

      Even with your inadequate grasp of English, you're able to communicate your desperation remarkably well.

  10. 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
    1. Re:The Chinese communist party by times05 · · Score: 1

      "US Has Killed More Than 20 Million People in 37 âoeVictim Nationsâ Since World War II" , that's just the headline of an article I happened to google.

    2. Re:The Chinese communist party by jeff4747 · · Score: 1

      So, would you prefer the post-Geneva list then? 'Cause it's not exactly short either.....

    3. Re: The Chinese communist party by c6gunner · · Score: 1

      Yeah, huffpoo is great!

    4. Re:The Chinese communist party by jeff4747 · · Score: 1

      So your argument is pre-Geneva doesn't count and post-Geneva doesn't count.

      Must be nice to never be responsible for anything.

    5. Re:The Chinese communist party by Anubis+IV · · Score: 1

      I decided to give the article a read to see where they got that number. I don't even know where to start with how wacky their logic is. So far as I can tell, they're tying everything around the neck of the US that they can, regardless of how tenuous the connection is.

      For instance, the US "killed" 1.8M in Afghanistan, not because of our post-9/11 invasion (12K deaths), but rather because the Soviets killed that many in the '80s, and the Soviet invasion is apparently our responsibility. That's on top of the 2.5M we "killed" in Cambodia, because Pol Pot. I kid you not. As it turns out, we also killed everyone who died in the Vietnam (7.8M) and Korean (4.5M) wars, all of whom were "victims", and not a single one of which was an enemy combatant. Likewise, we "killed" 3M people as part of the 1971 genocide and civil war in Bangladesh (née East Pakistan), since the country was a Cold War ally of ours, which apparently means that we pulled the trigger ourselves.

      The article brings up some valid points (e.g. El Salvador), and there's no denying that the US bears some degree of responsibility in a number of these, but the headline is sensationalist garbage and nonsensical to the extreme. Were we to apply their logic to everyone else who also bears responsibility for these events, we would have collectively "killed" far more people than were even alive since WW2, let alone than the number who actually died.

  11. Re:going to "Whattabout" in the open now, Ivan? by hackingbear · · Score: 1

    So you're going to "Whattabout" in the open now, Ivan?

    "Whattabout" Ivan.

  12. Re:and drumpf has ties to russia by fustakrakich · · Score: 1

    And Iraq did 9/11... No, wait, Afghanistan did 9/11.. But we know that Saudi Arabia had absolutely nothing to do with it. He just went in to renew his passport.

    --
    “He’s not deformed, he’s just drunk!”
  13. 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/...

  14. Pictures or it didn't happen : John McCain by thesjaakspoiler · · Score: 1

    I got one for you : John McCain had ties with ISIS but the MSM doesn't seem to be interested in reporting about that : https://en.azvision.az/news/51...

  15. Many thanks for sharing by martintolleygm · · Score: 1

    Many thanks for sharing this very diverse opinion post where each expert has no doubt shared his best knowledge on the topic. Have more success in your journey geometry dash

  16. Re:Ermagerd, international corp sells internationa by cmseagle · · Score: 1

    You're telling me that the Clinton family is in business with Iran, and somehow that bit of dirt didn't get dug up at any point in the 2016 campaign?