Editor’s Note: The following report is excerpted from Joseph Farah’s G2 Bulletin, the premium online newsletter published by the founder of WND. Subscriptions are $99 a year or, for monthly trials, just $9.95 per month for credit card users, and provide instant access for the complete reports.

WASHINGTON – The giant Chinese telecommunications company Huawei Technologies Co. Ltd. allegedly was involved in an attempt last year to sell embargoed U.S. telecommunications technology to Iran, informed sources say in a report in Joseph Farah’s G2 Bulletin.

An Iranian partner of Huawei, Soda Gostar Persian Vista, allegedly tried in 2011 to sell embargoed American antenna equipment to the Iranian firm, MTN Irancell, but the transaction never was completed.

Huawei recently has come under congressional scrutiny, along with another Chinese company, ZTE, for alleged espionage of U.S. telecommunications systems.

Sources say that Huawei’s Iranian partner, a mobile-phone operator, canceled the deal after finding out that the technology was embargoed to Iran, which is subject to stringent Western sanctions. The equipment never was delivered, according to sources.

This isn’t the first time these Chinese companies have been used as a conduit to obtain embargoed U.S. technology, according to sources.

ZTE allegedly had agreed to sell U.S. computer equipment worth millions of dollars to Telecommunication Co. of Iran, or TCI. The allegation remains under investigation by the U.S. Departments of Justice and Commerce.

The House Permanent Select Committee on Intelligence in early October released a 52-page report along with a classified annex raising concerns about Huawei and ZTE’s expansion into the U.S. market. The concerns are that the companies, said to be tied to the Chinese government, could spy and actually disrupt telecommunications systems incorporating Huawei and ZTE technology.

Despite efforts by the Chinese companies to dissuade the committee that it was not engaged in espionage, the House committee report said that “neither company was willing to provide sufficient evidence to ameliorate the committee’s concerns.”

The committee’s report follows earlier revelations by WND/G2Bulletin last June that the two Chinese companies had developed what was a covert capability to remotely access communications technology sold to the U.S. and other Western countries and could “disable a country’s telecommunications infrastructure before a military engagement,” according to former and current intelligence sources.

These sources added that the companies, acting on behalf of the Chinese government, also have the ability to exploit networks “to enable China to continue to steal technology and trade secrets.”

In effect, sources say that both companies have set up “electronic backdoors” to telecommunications technology sold to the U.S. and other countries.

In spite of the recent public revelations and now the House intelligence committee report, Huawei continues to sell communications technology in the U.S., leaving open the prospect of exploitation of electronic telecommunications backdoors.

The electronic backdoor capability reportedly could allow the Chinese government, through the two companies’ technology, to access information traveling through telecommunications networks or even sabotage electronic devices, sources say.

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