Cisco Drops ZTE for Banned Sales to Iran
Created: 2012-10-08 14:51 EST
In another blow to Chinese telecommunication gear maker ZTE Corp after Monday’s congressional report, a major US networking company announced it was dropping it as a sales partner.
According to Reuters, Cisco Systems ended is partnership with ZTE after an internal investigation into claims that the Chinese firm had sold banned computer equipment to Iran, breaking a US embargo on the country. That equipment had come from Cisco and other US companies.
Reuters first raised those claims in March. It prompted probes by Cisco and ZTE, as well as a FBI criminal investigation. That federal investigation is ongoing.
ZTE is China's second largest telecom equipment maker. After Reuters’ claim in March, the company said it would, quote, “curtail” its business with Iran.