U.S. authorities arrested Meng as part of an investigation into whether Huawei violated sanctions on Iran. Huawei allegedly broke U.S. sanctions last year by selling embargoed American equipment to Iran, Reuters reported in October.
Huawei became the largest telecommunications equipment manufacturer in the world in 2017 -- knocking Ericsson out of the top spot. In a 2012 investigation by the U.S. House of Representatives Committee on Intelligence concluded "the risks associated with Huawei’s and ZTE’s provision of equipment to U.S. critical infrastructure could undermine core U.S. national-security interests."
Because of alleged security risks to the U.S., Verizon and AT&T stopped selling Huawei smartphones in January, while Best Buy stopped selling Huawei laptops, cellphones and smartwatches.
The U.S. defense bill, signed by President Donald Trump in August, prohibits the federal government from procuring or obtaining, as well as entering into, extending or renewing a contract with an entity that uses telecommunications equipment or services produced by Huawei.
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