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Huawei hit with new Justice Department criminal investigation

by Danny Zepeda | April 25, 2018April 25, 2018 1:00 pm PDT

To say it’s been a rough year for Huawei would be an understatement. It lost its major carrier partnerships, followed by its main brick and mortar partner, all while it struggles to break into the U.S. market. Yet the hits keep on coming: Huawei is now under criminal investigation.

According to The Wall Street Journal, the Justice Department has opened a criminal investigation against Huawei concerning violations of U.S. sanctions with Iran. At worst, the investigation could lead to criminal charges against Huawei executives, dealing another blow to the Chinese company.

Consequently, ZTE, another Chinese manufacturer recently hit with an export ban, dealt with similar sanctions.

Leading up to CES earlier this year, Huawei was prepping a big push into the U.S. market, enlisting AT&T and Verizon as partners. But as government pressure began, both of the carriers dropped out, jumpstarting a downward spiral for Huawei that is reaching a boiling point.

Moving forward, it’s unclear what results the investigation will yield. However, even if Huawei is vindicated, it seems its opportunity to break into the U.S. market has been drastically derailed for good. Which is a shame because its recently released P20 Pro seemed like the perfect opportunity to make some headway in the U.S.

WSJ

Danny Zepeda

Born and raised in Southern California, Danny grew up on a steady diet Pixar, Star Wars and Steven Spielberg movies. Unbeknownst to him, this was...

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