MIT Cuts Ties With Huawei, ZTE

The U.S. authorities investigate Chinese corporations Huawei Technologies and ZTE Corp for alleged sanctions violations, according to Reuters.

The Massachusetts Institute of Technology (MIT) is known to have ties with the Chinese technological giants, as they are the largest American education institution to unplug telecom equipment made by Huawei.

Maria Zuber, the vice president of MIT, wrote a letter on their website in which she said:

‘’MIT is not accepting new engagements or renewing existing ones with Huawei and ZTE or their respective subsidiaries due to federal investigations regarding violations of sanctions restrictions. Collaborations with China, Russia and Saudi Arabia would face additional administrative review procedures. The institute will revisit collaborations with these entities as circumstances dictate.’’

On the other hand, other international education institutions like Oxford University from Britain stopped accepting funding from Huawei earlier this year.

Huawei officials denied the accusations from the U.S government as they issued a statement in which they said:

“We are disappointed by MIT’s decision, but we understand the pressure they are under at the moment. We trust the U.S. judicial system will ultimately reach the right conclusion.”

At the end of last year Meng Wanzhou, the chief financial officer and daughter of Huawei’s founder Ren Zhengfei, was arrested in Canada at the request of the United States because of the charges of bank and wire fraud in violation of U.S. sanctions against Iran.

In the meantime, Reutersrequested a comment from ZTE on the whole situation, to which they did not reply.

This Thursday, a spokesman of the Chinese Foreign Ministry, Geng Shuang told a news briefing that the two companies were required to abide by local laws.

“At the same time, we ask that governments in countries where they are based provide a just, fair, and nondiscriminatory environment,’’ said Shuang in his statement.

The United States accuses Huawei Technologies and ZTE Corp for using their equipment for spying, making the two giants face scrutiny; however, they say that these accusations are unfounded.

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