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Huawei partner offered embargoed computer equipment to Iran: report


Staff and visitors walk pass the lobby at the Huawei office in Wuhan, central China's Hubei province on October 8, 2012. Beijing on October 8 urged Washington to 'set aside prejudices' after a draft Congressional report said Chinese telecom firms Huawei and ZTE were security threats that should be banned from business in the US.



Documents obtained by Reuters show that a major Iranian partner of Chinese telecommunications giant Huawei Technologies attempted to sell forbidden Hewlett-Packard computer equipment to Iran’s largest mobile phone company in 2010.

The US bans the exports of computer equipment to Iran, fearing the products could help the country develop nuclear weapons, Reuters reported.

Huawei’s partner, SkyCom Tech Co. Ltd., included the offer of equipment in a sales proposal to Iran’s Mobile Telecommunication Co (MCI), but no equipment was shipped, Huawei told Reuters.

According to Reuters:

At least 13 pages of the proposal to MCI, which involved expanding its subscriber billing system, were marked "Huawei confidential" and carried the company's logo.

"Huawei's business in Iran is in full compliance with all applicable laws and regulations including those of the UN, US and EU,” Huawei told Reuters in a statement. “This commitment has been carried out and followed strictly by our company. Further, we also require our partners to follow the same commitment and strictly abide by the relevant laws and regulations."

"HP's distribution contract terms prohibit the sale of HP products into Iran and require compliance with US and other applicable export laws,” Palo Alto, Calif.-based Hewlett-Packard said in a statement, according to Reuters. "HP has an extensive control system in place to ensure our partners and resellers comply with all legal and regulatory requirements involving system security, global trade and customer privacy and the company's relationship with Huawei is no different."

Huawei became the world’s largest telecommunications maker in August, knocking Ericsson from the top spot, according to TechCrunch.

Earlier this year, US lawmakers accused Huawei of selling mobile phone tracking equipment to Iranian mobile phone operators, TechCrunch reported.

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