USA investigating whether Huawei stole trade secrets

USA investigating whether Huawei stole trade secrets

USA investigating whether Huawei stole trade secrets

According to a report by the Wall Street Journal, the preparation of a criminal indictment against Huawei stems from a 2014 legal battle initiated by T-Mobile.

The newspaper says investigators are looking into whether the company stole technology behind a robotic device that T-Mobile used to test smartphones.

The latest allegation could deepen the trade rift between China and the USA and put more pressure on Huawei, which is at the centre of suspicions that its equipment allows Beijing to monitor communications.

As the Journal noted, there is pressure growing in Congress to pass a law banning the export of USA products to companies that violate global sanctions - with Huawei and fellow Chinese tech company ZTE clearly the target.

Ren's daughter and Huawei chief financial officer Meng Wanzhou was detained in Canada last month on United States fraud charges related to Iran sanctions violations.

Meng, the daughter of the company's founder, was arrested in Canada on December 1 and released on bail four weeks ago.

At that time, Washington had announced an indictment against Chinese chipmaker Fujian Jinhua Integrated Circuit Co Ltd for stealing trade secrets from USA semiconductor company Micron Technology relating to research and development of memory storage devices.

China's Foreign Ministry said on Thursday that proposed U.S. legislation targeting Huawei, ZTE and other Chinese telecommunications equipment companies was due to "hysteria", and urged United States lawmakers to stop the bills.

The company was founded in 1987 by Ren Zhengfei, a former officer in the People's Liberation Army, prompting questions about possible improper links to the Chinese state.

Resolving in 2017, T-Mobile won the case but was only awarded $4.8 million, as the Seattle court ruled that the actions were "not wilful, nor malicious", despite potentially being deliberate.

Oxford University has made a decision to forgo further funding from Chinese tech giant Huawei as scrutiny grows in Europe over the telecom company's relationship with the Beijing government.

The press release also said that the bill would direct the president "to impose the same strict penalties originally faced by ZTE on any Chinese telecommunications firm found to be in violation of USA export control laws or sanctions". Furthermore, if China is willing to arm-twist the Canadian government for Huawei's CFO, what might else it do in support of the company's business interests? As part of the agreement, the us lifted a ban in place since April that had prevented ZTE from buying the USA components it relies on heavily to make smartphones and other devices.

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