China calls proposed United States legislation against Huawei, ZTE "hysteria"

Posted January 18, 2019

The proposed law was introduced on Wednesday shortly before the Wall Street Journal reported that USA authorities are in the "advanced" stages of a criminal probe that could result in an indictment of Chinese technology giant Huawei, the second-largest global smartphone maker and biggest producer of telecommunications equipment.

Ren declined to comment in detail about his daughter's arrest, but made a calculated statement meant to catch the attention of Trump by calling him "a great president".

The legislation introduced on Wednesday would force the executive branch to impose an export ban on ZTE, Huawei, or other Chinese companies if they were caught violating USA sanctions again.

T-Mobile alleged in a 2014 lawsuit, filed in federal court in Seattle, that Huawei employees stole technology relating to a smartphone-testing robot T-Mobile had in a lab in Bellevue, Washington.

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The arrest of a Huawei employee in Poland last week underscored the increasing pressure on the company in the U.S., Europe and elsewhere over espionage concerns. This could lead to a similar situation with ZTE where the company has been banned from getting access to U.S. technology.

T-Mobile also claimed it wasn't Huawei's first victim, alleging that the Chinese tech giant also stole source code and other trade secrets from other companies.

Following recent controversies that have seen Chinese telecom manufacturer Huawei Technologies accused of spying, breaking sanctions, and stealing intellectual property, governments around the world are taking action.

U.S. President Donald Trump's administration has pushed European allies to block Huawei from telecom networks, and slapped tariffs on China in part to limit its access to next-generation technologies. The Justice Department didn't immediately respond to a request for comment. Similarly, ZTE was banned by the U.S. Commerce Department previous year for lying about sanctions violations.

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Senator Cotton said that Huawei is China's intelligence gathering agency and must the lawmakers must take a decisive action to protect the U.S. interests and enforce the law. Set a simple standard: "If a Chinese telecommunications company is found to have violated USA sanctions, it will be punished more severely than ZTE".

The company is also mired in a USA criminal case alleging that CFO Meng conspired to defraud banks into unwittingly clearing transactions linked to Iran in violation of US sanctions.

T-Mobile sued Huawei four years ago claiming the company had stolen the technology, winning a $4.8m (£3.7m) payout in 2017. They worry that, if Americans buy telecommunications equipment from either company, the gear could later be used as a way for the Chinese government to spy on Americans.

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