Recent revelations have tied Chinese tech giant Huawei to front companies operating in Iran and Syria, casting further doubt on the company’s claims of independence from these entities. The U.S. case against Huawei’s Chief Financial Officer, Meng Wanzhou, hinges on allegations that she deceived international banks into clearing transactions with Iran by misrepresenting the nature of two companies: Skycom Tech Co Ltd, a telecom equipment seller in Tehran, and Canicula Holdings Ltd, a holding company registered in Mauritius.
While Huawei has repeatedly stated that these firms were independent, new documents discovered by Reuters suggest otherwise. The findings show that a senior Huawei executive was appointed as Skycom’s manager in Iran, and several individuals with Chinese names had signing rights for bank accounts linked to both Huawei and Skycom in Iran. Additionally, a Middle Eastern lawyer disclosed that Huawei operated in Syria through Canicula.
These newly uncovered ties between Huawei and the two companies are expected to strengthen the U.S. case against Meng, who was arrested in Canada in 2018. U.S. authorities accuse Huawei of using Skycom to facilitate the sale of telecom equipment to Iran, thereby circumventing U.S. sanctions. The deception allegedly led international banks to unknowingly clear transactions worth hundreds of millions of dollars in violation of U.S. sanctions on Iran.
The case against Meng, who is also the daughter of Huawei’s founder, Ren Zhengfei, could have significant implications for the global tech industry, as well as ongoing tensions between the U.S. and China over trade and technology.
