CCP Accused for Hiding Illegal Business with Iran

On August 9th, the U.S. Department of Commerce charged China’s largest wire and cable manufacturer, Far East Cable, with violating U.S. export controls on shipments of telecommunications equipment to Iran.

Exports to Iran are strictly controlled due to U.S. sanctions on Iran. ZTE suspended exports to Iran in 2012. In 2013, the US Department of Commerce investigated ZTE, so Far East Cable and ZTE reached an agreement to purchase equipment and parts from ZTE to supply Iran. Far East Cable acted for ZTE, and facilitated ZTE’s exports to Iran. According to the U.S. Commerce Department’s allegation letter, from September 2014 to January 2016, Far East Cable had a total of 18 violations of U.S. export controls.

In 2017, ZTE reportedly paid a fine of $892 million and admitted violating U.S. law and obstructing U.S. justice by deliberately covering up illicit Iranian business. ZTE has since been allowed to buy U.S. merchandises and technology, but in 2018 the U.S. found that ZTE was lying and banned U.S. companies from selling to ZTE in April of that year. After ZTE paid $1 billion in lobbying costs, the U.S. Government lifted the ban three months later. ZTE remains under the oversight of the Commerce Department, and its 2017 ‘suspended sentence’ ended in March.