USA unveils sweeping fraud, tech theft charges against China's Huawei

Posted January 31, 2019

"Those acts were motivated by strong political intentions and manipulation", he said.

In a previous sworn affidavit, Meng said she is innocent and would contest the allegations at trial in the United States if she is extradited.

The Australian chairman of Chinese telecom giant Huawei Technologies believes the company has been caught up in "China bashing".

A pair of indictments, which were partly unsealed on Monday, come amid a broad and aggressive campaign by the USA to try to thwart China's biggest telecom equipment maker.

In a Brooklyn filing, the Justice Department accused Huawei of denying ownership of Skycom, which allegedly conducted business with Iran in vio‌lation‌ of US sanctions between 2007 and 2017. Also charged are two of the company's affiliates and its chief financial officer, Meng Wangzhou.

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Meanwhile, Huawei continues to vehemently deny all allegations. The previous round of US-Sino talks was held in Beijing on January 7-9. It has charged several Chinese hackers and intelligence officials.

It said the charges related to T-Mobile's technology were the subject of a 2014 civil lawsuit that had already been settled, with a jury finding "neither damages nor willful and malicious conduct on the trade secret claim".

Meng is out on bail in Vancouver and her case is due back in court Tuesday as she awaits extradition proceedings to begin.

The arrest of Meng, who is the daughter of Huawei's founder, Ren Zhengfei, ratcheted up tensions with China, which responded by arresting two Canadians on national security grounds.

President Donald Trump and his Chinese counterpart, Xi Jinping, agreed Dec 1 to put off any further sanctions against each other's exports while they negotiated.

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Christopher Wray, director of the US Federal Bureau of Investigation (FBI), has said that the cases "expose Huawei's brazen and persistent actions to exploit American companies and financial institutions, and to threaten the free and fair global marketplace". Intellectual property theft is a central issue in the talks, for one thing. 'The difference in understanding will bring about complicated problems'.

"Huawei engineers violated confidentiality and nondisclosure agreements with T-Mobile by secretly taking photos of "Tappy", taking measurements of parts of the robot, and in one instance, stealing a piece of the robot so that the Huawei engineers in China could try to replicate it", writes the DOJ.

T-Mobile told the BBC it had no comment to make over the new indictments.

But prosecutors have said it was in fact a part of a company-wide effort and alleged Huawei actually rewards employees for stealing trade secrets. As trade tensions between the US and China over the previous year have risen, the company has become a focus-point for the US Justice Department.

Huawei is the world's largest supplier of telecommunications network equipment and second-biggest maker of smartphones. It has rejected accusations that it is controlled by China's ruling party and might facilitate spying. Ottawa should not risk endangering itself for other's gains, he added.

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