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Posted by on Oct 9, 2012 in Companies |

Cisco cuts relations with ZTE after the Chinese company sold equipment to Iran

Cisco cuts relations with ZTE after the Chinese company sold equipment to Iran

The decision comes after the Congress indicated that Chinese companies Huawei and are a “security risk” state.

After the U.S. Congress declared that Chinese companies Huawei and ZTE are a “security risk” state , the company dissolved a business deal he held for seven years with ZTE.

The cancellation of the agreement by Cisco is due to internal investigations indicate that the Chinese company sold telecommunications equipment manufactured by the U.S. company to Iran. The sale of these network equipment to had been banned by the U.S., so when it was learned that ZTE might be performing these investigations were initiated transactions within firms, in the Commerce Department, a congressional committee and the FBI .

A Chinese company spokesman said he was in talks with Cisco, indicating that the company “is actively cooperating with the U.S. government regarding research on Iran.”

Cisco launched a partnership with ZTE to sell its products in Asia, agreement had been weakened in recent years by the interest of the Chinese firm entering the U.S. market, where it would compete with Cisco. ZTE has maintained sales of products in Iran, where U.S. companies do not sell because they are sanctioned by the government of his country.

Link: Exclusive: Cisco cuts ties to Iran after China’s ZTE probe (Reuters)

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