The Massachusetts Institute of Technology said on Wednesday that it has stopped collaborations with Huawei Technologies and ZTE Corp. This comes after the US officials alleged the aforementioned tech companies of violating various sanctions.
This move by MIT was necessary if the education institute wishes to continue to receive federal aid.
The vice president for research, Maria Zuber, said that all ties with China, Russia
Last December, Meng Wanzhou, CFO Huawei, was arrested in Canada. The charges were of bank and wire fraud which breached the sanctions placed by the United States on Iran. The arrest was done as per the request of the US government.
ZTE’s business in the US was quite rough last year as the government pushed the company to halt its operations. The Commerce Department claimed that the firm exported US-origin goods to Iran and North Korea which were a clear violation of the sanctions. ZTE had to pay a sum of $1.4 billion as penalties for the same.
It is not only the US government who is against the use of Huawei equipment in their territory. Governments of other countries too have come forward in reducing usage of technologies provided by this Chinese tech company as allegations on Beijing using Huawei devices for spying still stand. But the companies involved in the arguments have denied any such claims of sending information to Beijing for spying.
Nonetheless, both companies face continued pressure from US officials as they believe that the equipment produced by the companies could pose cybersecurity threats.