Cisco said to cut ties with China's ZTE

08.10.2012
has reportedly cut ties with Chinese telecom vendor ZTE after .

In June, a Reuters story revealed that Cisco, HP and Oracle gear was being sold to an Iranian mobile operator despite U.S. government sanction on such sales. Cisco conducted an internal investigation into ZTE's practices and as a result, recently ended a longstanding relationship with the Chinese company, according to a published this week.

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The Cisco/ZTE situation comes amid a report due today from the U.S. House Intelligence Committee that states that equipment from ZTE pose a The report, which follows a year-long investigation, recommends the U.S. block any attempts by ZTE and Huawei to make acquisitions or mergers in America, and encourages U.S. firms to procure equipment from other sources.

A ZTE spokesperson said of the Cisco action that the company is "highly concerned" and "communicating" with Cisco, according to Reuters. The spokesperson also said ZTE is cooperating with the U.S. government on its investigation into sales to Iran.

Cisco did not comment by the time this story was posted. But in June, Cisco said it "... complies with all U.S. export laws and requires our business partners to expressly acknowledge that they too must abide by these laws. Products such as these, which are not subject to individual export licenses, can be purchased from distributors and resold without Cisco's knowledge or control. We continue to investigate this matter, as any violation of U.S. export controls is a very serious matter."