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In a revelation that is sure to degrade an already deteriorating US-China trade situation, internal Huawei documents accessed by Reuters suggest that the Chinese telecom giant shipped prohibited equipment to Iran, despite US sanctions. A review of the internal records of the Chinese telecommunications company Huawei as of March 2nd show its direct involvement in forwarding prohibited U.S computer equipment to an Iranian telecom carrier. The company had for a long time, denied these allegations.

According to the Reuters investigative report, two Huawei packing lists, dated December 2010, included computer equipment made by Hewlett-Packard Co and destined for the Iranian carrier, internal Huawei documents reviewed by Reuters show.
Another Huawei document, dated two months later, stated: “Currently the equipment is delivered to Tehran, and waiting for the custom clearance.”

In 2019 Huawei was accused of theft of intellectual property of its competitors, in what resulted into one of the most dangerous trade wars in the history between the US and China. The Chinese company also faced allegations such as money laundering, bank and wire fraud, obstruction of justice and flouting U.S sanctions on Iran. These allegations led to the company’s restriction on trade with several U.S companies. Violating U.S sanctions involved its willful export of U.S technology to Iran, the evidence for which has now been uncovered.

The US accusations have time and again cited articles that reveal Huawei’s offer to sell $1.3 Billion worth of goods from companies such as H.P to Iran. The newly uncovered evidence also includes the Iranian company’s price list stamped “skycom Iran office” and marked with the Huawei label.

While these new documents are sure to add fire to the already heated allegations against Huawei, they also kind of complete a bigger picture.

In 2018, the company’s chief financial officer Meng Wonzhou was arrested in Vancouver, Canada. This was done on the request of the U.S. government, under allegations of defrauding multiple financial institutions in relation to skirting U.S sanctions to Iran.

According to the U.S., Wonzhou, in order to get banking services, lied about Huawei’s relationship to an imaginary subsidiary titled ‘Skycom’. Huawei however denies any such affiliation or being aware of such a wrongdoing by Wonzhou. The company reiterated that U.S Courts will reach the same conclusion as well. These new documents of course lay that falsified claim bare in the open.

Wonzhou has been fighting extradition ever since. But where do the two, the allegations on the company and on Ms.Wonzhou come together? The documents essentially reveal a connection between the Chinese company and a multi-billion dollar telecommunications project in Iran. The crimes Wonzhou is being accused of fit in as a source of funding for this project. Both accusations fuel each other and thus complete a bigger picture.

The Chinese company could however counter the argument through one reason. Hong Kong records show the dissolution of the company named Skycom as early as 2017. However, sets of evidence have revealed another actor involved. A company named Panda International Information Technology Co. which has also been accused of acquiring hardware and software again, for Iran. The company has had long standing ties with Huawei and is a Chinese state controlled company.

In a dangerous environment of newly uncovered evidence, the Chinese company has conveniently refused to comment. The Chinese Foreign Ministry accuses U.S of playing the role of a bully, selling the over generalization of the national security narrative to suppress Chinese firms.

The accusations and their respective evidences add to the broader accusation made against the company of its general actions against American interest involving theft of intellectual property and forwarding of U.S equipment against legalities.