Hard-drive maker Seagate Tech faces China sanctions warning

In reporting lower profit and revenues for its fiscal first quarter, Seagate said it was reducing its headcount by 3,000 people as part of a restructuring. [iStockphoto]

Seagate Technology said Thursday the U.S. Department of Commerce has warned it may charge the computer hard-drive maker with violating restrictions on exports of high-tech products to China.

The company said in an SEC filing that it rejected the allegations. It says its hard disc drives are not subject to U.S. Export Administration regulations, but troubles over the issue could affect its business.