The US Federal Bureau of Investigation has opened a criminal investigation into Chinese telecom gear maker ZTE Corp's sale of banned US computer equipment to Iran, the Smoking Gun website reported yesterday.

The federal probe stems from a report in March that Shenzhen-based ZTE sold Iran's largest telecom firm a powerful surveillance system capable of monitoring landline, mobile and Internet communications.

The article also reported that ZTE's 907-page "Packing List" for the US$120 million contract, dated July 24, 2011, included hardware and software products from several top US technology firms, including Microsoft Corp, Hewlett-Packard Co and Oracle Corp. Sales of the equipment are prohibited by US sanctions on Iran.

The Smoking Gun published on its website excerpts from a confidential FBI affidavit based on a May interview with Ashley Kyle Yablon, the general counsel of ZTE's US subsidiary in Texas. ZTE spokesman David Shu said the company had no immediate comment.