Sunday, 17 February, 2019

U.S. Government charges Huawei with stealing T-Mobile’s trade secrets

Fine, we'll do it the Huawei, says Uncle Sam: CFO charged with fraud, faces extradition to US over Iran trade claims U.S. DOJ slams a 13-count charge against China’s Huawei, seeks to extradite its CFO
Russell Knight | 31 January, 2019, 02:46

Acting U.S. Attorney General Matthew Whitaker announced January 28 that the Department of Justice has filed charges against Huawei Technologies Co. and its CFO, Meng Wanzhou, for a series of alleged criminal acts, including bank fraud, conspiracy, money laundering, obstruction of justice and fraud, against the United States.

Canada arrested Meng on December 1 as she was changing planes in Vancouver, at the request of the United States, which on Monday brought sweeping charges against Huawei and Meng that paint the company as a national security threat. Meng, 46, has been charged with multiple counts of bank fraud, wire fraud, and conspiracies to commit bank and wire fraud, by allegedly busting the aforementioned USA sanctions by conducting business in Iran via Huawei's American arm.

The executive charged is Huawei's chief financial officer, Meng Wanzhou, who was arrested in Canada last month. She was placed under arrest December 1 in Vancouver, Canada.

A Canadian court will now decide whether to proceed with extradition procedures.

Foreign Ministry spokesman Geng Shuang said on Tuesday that China is dissatisfied with and firmly opposed to the United States' extradition demand and its disregarding Beijing's stern representations.

Wilbur Ross, U.S. Commerce Secretary said the charges are a completely separate issue from the scheduled trade talks.

China's Vice Premier Liu He is leading a delegation for high-level trade and economic talks in Washington this week, including a meeting with U.S. President Donald Trump.

"We are anticipating no big outcomes this week", Erin Ennis, senior vice president at the US-China Business Council, said on Monday before the Huawei charges were announced. Her lawyer Reid Weingarten said Meng "should not be a pawn or a hostage" in "complex" Sino-US relations. The Chinese government retaliated nearly immediately by arresting two Canadian citizens living in China.

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"China should be concerned about criminal activities by Chinese companies - and China should take action", Acting US Attorney General Matt Whitaker said at a news conference with other Cabinet officials.

Numerous 23 charges relate to Huawei's alleged dealings with Iran, which is the subject of U.S. economic sanctions. American prosecutors have called for her extradition from Canada to face trial in the US. I reached out to Huawei for comment and will update this post if I hear back.

Many countries, including the United States, Britain and Australia, have issued statements in support.

The US Department of Justice has formally unsealed indictments against Chinese tech giant Huawei. "Therefore, to arrest the CFO of Huawei is purely a political act".

The U.S. case focuses on some fairly specific incidents.

Prosecutors also claimed that Huawei sought to impede investigation on the matter by des‌troyi‌ng or concealing evidence.

The Justice Department charged that the Chinese company had, in July 2013, offered bonuses to employees "based on the value of information they stole from other companies around the world, and provided to Huawei via an encrypted email address".

Australia in August banned Huawei and another Chinese telecommunications equipment company, ZTE Corp, from involvement in the rollout of the nation's 5G network.

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