M.I.T. cuts ties with Huawei, ZTE over U.S. investigations

Image: Jaap Arriens/NurPhoto via Getty Images

One of the United States’ top universities is cutting ties with and .

The Massachusetts Institute of Technology (MIT) made the decision to terminate its existing relationships, as well as suspend future ones, with the two Chinese tech giants. 

The university’s decision comes in light of current federal investigations into the companies over sanctions violations. MIT’s associate provost and vice president for research made the announcement in a on Wednesday.

At this time, based on this enhanced review, MIT is not accepting new engagements or renewing existing ones with Huawei and ZTE or their respective subsidiaries due to federal investigations regarding violations of sanction restrictions,” says the letter. “The Institute will revisit collaborations with these entities as circumstances dictate.”

In addition to ending its relationships with Huawei and ZTE, certain proposals deemed “elevated-risk” will need special administrative review. These elevated-risks include “projects funded by people or entities from China (including Hong Kong), Russia and Saudi Arabia.” These new requirements also cover work involving MIT faculty or students in these countries as well as projects involving individuals or organizations from these countries.

MIT is far from the first university to cut its ties with tech companies in China. According to the , Stanford University, the University of California, Berkeley and the University of Minnesota have all suspended future research work with Huawei.

Tensions between China and the U.S. are running due in part to President Trump’s with the country. Even haven’t been spared from the ramifications.

Beyond Trump’s trade war, U.S. intelligence officials have repeatedly accused Huawei and ZTE of for the Chinese government. These national security issues have prompted President Trump to of the two China-based companies’ products.

U.S. authorities even conducted a on Huawei at this year’s CES after the company allegedly attempting to steal an American company’s technology. That very same month, the U.S. also the Huawei with attempting to steal trade secrets from T-Mobile.

On top of all that, as previously mentioned, both Huawei and ZTE have been under federal investigations for sanctions violations. 

Earlier this year, Huawei, along with top executives, were with fraud and money laundering related to violations of U.S. sanctions on Iran. 

As part of a plea deal, ZTE faced a 7-year supplier in the U.S. after being charged with violating sanctions on Iran and North Korea. Interestingly enough, Trump intervened to end the ban after the company said the ban would effectively its business.

The relationship between the U.S. government and these Chinese tech companies doesn’t look to get better anytime soon either. In response to its products being banned in the U.S., Huawei recently announced that it will .

Don’t be surprised if more universities join MIT and the other school’s that have decided to stop working with Huawei, ZTE, and other Chinese-based companies.