Thursday, 24 October, 2019

China calls proposed USA legislation against Huawei, ZTE 'hysteria'

Huawei under investigation for allegedly stealing trade secrets US 'probes Huawei for trade secret theft'
Russell Knight | 17 January, 2019, 12:26

The report could not be immediately confirmed.

The allegations are reportedly related to a 2014 lawsuit between China's Huawei and T-Mobile.

Last week, Poland arrested a local Huawei executive and a former intelligence official on allegations of spying for China.

It comes as the Trump administration is pressing China to take action on questions of technology theft or face additional trade tariffs.

The founder of Chinese tech giant Huawei is thanking Canada's justice system for the kind treatment of his daughter, the company's chief financial officer arrested last month in Vancouver on a US warrant.

In 2012, congressional committees and other USA government entities criticized Huawei's "pattern of disregard for the intellectual property rights of other entities and companies in the U.S".

This time, however, the US Department of Justice' investigation isn't focusing on some grand national security threat but on the Huawei's repeated theft of trade secrets from US companies.

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A group of bipartisan senators on Wednesday introduced a bill prohibiting the export of US-produced parts and components to telecommunication companies in China that have violated U.S. sanctions, Congressman Mike Gallaher's press office said in a release.

Directing 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.

And Huawei CFO Meng Wanzhou was arrested in Canada in December based on U.S. charges that she was responsible for violations of USA sanctions against Iran.

The move came after retail stores at United States military bases were prohibited from selling Huawei and ZTE mobile phones over concerns that they pose an unacceptable risk to the military's personnel, information, and mission.

The trade secrets investigation arose from civil lawsuits against Huawei, the Wall Street Journal said, including one in Seattle where Huawei was found liable for misappropriating robotic technology from T-Mobile.

The robot, Tappy, used human-like fingers to simulate tapping on mobile phones. The carrier sought $500 million in damages; three years later, T-Mobile was awarded $4.8 million by a jury.

According to T-Mobile's lawsuit, Huawei employees photographed the robot and attempted to remove one of its parts.

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