On Tuesday (August 9th), the largest wire and cable manufacturer of China has stated administrative allegations that it violates the US export control and helps telecommunications company ZTE provides restricted technologies to Iran.

The Wall Street Journal reported that according to a charged letter from a department in the US Department of Commerce, the Far East Cable Co., Ltd. of Jiangsu Province signed a contract with ZTE to try to cover up the business of the telecommunications company and Iran.The business depends on the native router and microprocessor in the United States.

The allegations of the Far East cable can be traced back to the US official investigation of ZTE in 2012.ZTE reached a series of reconciliation with the Federal Prosecutor and the Ministry of Commerce in 2017. Based on these reconciliation, ZTE acknowledged violations of US export control regulations and sanctions on Iran.

During that period of the investigation, the Far East Cable began to play the official "middleman" as ZTE's communication work, which is essentially a substitute company for another company to avoid export control regulations.

In 2013 and 2014, contracts signed with ZTE and telecommunications companies in ZTE allow the Far East Cable to provide American technology to customers of ZTE in Iran, while covering ZTE's role in transactions.The US Department of Commerce said this arrangement continued until early 2016.

According to reports, the allegations of Tuesday were proposed by the Industry and Security Agency, which are affiliated to the US Department of Commerce, that the bureau is responsible for supervising regulations to prevent foreign opponents from obtaining American sensitive technology.The leaders of the Industry and Security Bureau have promised that national security concerns caused by opponents such as China and Russia will strengthen their implementation of export control regulations.

The reconciliation agreement between ZTE and the US Department of Justice ended earlier this year.However, the company still needs to accept additional supervision by the US Department of Commerce.