The news is the latest in a series of efforts by the US government to curb the business of Chinese companies Huawei and ZTE in the US telecom market due to national security concerns. ZTE paid a major fine last year for violating the Iran sanctions and is now facing a seven-year ban on buying American components for not taking enough remedial action.
According to Reuters, Huawei said it complies with "all applicable laws and regulations where it operates, including the applicable export control and sanction laws and regulations of the UN, US and EU."
The Justice Department investigation into Huawei follows administrative subpoenas on sanctions-related issues from both the Commerce Department and the Treasury Department’s Office of Foreign Assets Control. The Commerce and Treasury departments can impose administrative penalties and regulatory sanctions on the company. The existence of a criminal probe represents a more serious level of potential misconduct and Huawei could face criminal penalties, the imposition of a corporate monitor and the prosecution of individuals involved in any illicit activity.
