After breaking the news that Huawei-partner Skycom had tried to sell embargoed electronics to Iran, Reuters has now revealed a closer relationship between the Chinese manufacturer and the little-known company. Iran is under US trade sanctions because of fears over its intention to develop a nuclear program, but Skycom reportedly offered to sell €1.3 million (roughly $1.76 million) of HP equipment to the country back in 2010. In what appears to be a comprehensive investigation, Reuters discovered that Huawei and Skycom are deeply linked through Huawei CFO Cathy Meng. It says that a management company controlled by Huawei's parent company once held all of Skycom's shares, adding that Meng was employed as Skycom's company secretary at the time.

"Skycom is a subsidiary of Huawei Technologies Corporation."

Reuters also uncovered a 2010 paper from London credit report firm ICP. In the paper, ICP claims to have spoken to Skycom's financial manager, and calls the company "a subsidiary of Huawei Technologies Corporation." The Reuters report also notes that many employees describe themselves on LinkedIn as previously working for "Huawei-skycom." In a statement, Huawei describes its relationship with Skycom as "a normal business partnership." It says it has "established a trade compliance system" in line with industry best practices and its business in Iran isn't breaking any laws. It adds that it holds its partners, including Skycom, to the same standards.