Huawei Sign

Earlier this month a story revealed that the United States House Intelligence committee had found devices from Chinese phone makers ZTE and Huawei could be used to spy on Americans. The story was originally written by The Wall Street Journal and both firms denied the accusation shortly after it was published. However, Reuters has learned that a Huawei partner nearly illegally sold U.S. technology.

Apparently a partner of Huawei named Soda Goster Persian Vista, which sells the company’s equipment in Iran, tried to sell antennas with U.S. technology in them to MTN Irancell, an Iranian wireless provider. The equipment was originally ordered in November of last year and was supposed to be delivered in February, but MTN Irancell called the deal off when it discovered the technology would possibly face sanctions, Reuters explained. It is currently illegal to sell U.S. technology to Iran. A company with a stake in MTN Irancell called the deal an “accident” and said it thought it was buying German technology.

“We did not participate in the delivery of this project because Huawei has been and continues to be in strict compliance with all relevant international and local laws and regulations,” a Huawei spokesperson told Reuters. ZTE, a Huawei competitor, is currently under investigation for entering deals to sell U.S. technology to Iran’s Telecommunication Co.

[via Reuters]