It was only a couple of months ago that Chinese companies Huawei and ZTE were thought to be of national threat by the US government, and whether that is true or not remains to be seen, but in the meantime it looks like Huawei has been hit with another scandal which certainly does not look to help their case. It seems that one of Huawei’s major partners has been accused of trying to sell embargoed computer systems to Iran. According to the reports, Huawei’s partner was prepared to sell $1.7 million worth of HP computer equipment to an Iran company called Mobile Telecommunication Co, or also known as MCI.

The idea was to expand the company’s subscriber billing system and a proposal was said to have been said where about 13 pages were marked as “Huawei Confidential” while carrying the company’s logo. According to the report, the proposal contained a price list of HP products including servers, disk arrays, switches as well as software. However according to Huawei, the equipment was not provided and that the proposal was merely a bidding document. In a statement the company released:

Huawei’s business in Iran is in full compliance with all applicable laws and regulations including those of the U.N., U.S. and E.U. 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.

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