Cisco Systems has washed its hands of Chinese telecom equipment maker ZTE, Reuters reports, after Cisco determined that ZTE was selling Cisco-branded networking equipment to Iran.
This year, the China-based firm had been reported as selling restricted and banned computer equipment developed by Cisco and other U.S. companies to Iran's telecom firms. According to the publication, ZTE agreed to ship U.S. products -- including Cisco switches -- to firms based in that country last year.
Following investigations conducted by the FBI, the U.S. Commerce Department and the companies that allegedly uncovered the sales, the general counsel of ZTE's Texas-based subsidiary claimed that its parent company tried to cover its tracks, "including possibly shredding documents," according to Reuters.
A criminal probe has been launched by the FBI in response.
David Dai Shu, a ZTE spokesman, said: "ZTE is highly concerned with the matter and is communicating with Cisco. At the same time, ZTE is actively cooperating with the U.S. government about the probe to Iran. We believe it will be properly addressed."
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