US Charges Huawei for Technology Theft & Violating Sanctions, China Rebukes "Unreasonable Crackdown"

Wednesday, 30 Jan, 2019

It also noted the allegations in the trade secrets charge were the subject of a United States civil lawsuit that already has been settled.

But while they said Chinese companies like Huawei have a pattern of flouting USA law, they said the charges do not allege crimes were committed by any Chinese government official.

The US indictment, which comes after the arrest of Huawei executive Meng Wanzhou in Canada late previous year, accuses the company of lying to the US Government about business ties to Iran. The allegations in the Western District of Washington trade secret indictment were already the subject of a civil suit that was settled by the parties after a Seattle jury found neither damages nor willful and malicious conduct on the trade secret claim.

The Justice Department unsealed two separate indictments of Chinese telecom device maker Huawei on Monday.

Canada's justice minister David Lametti told reporters that Meng's case will be handled according to Canada's extradition obligations under a treaty with us, while respecting her Charter rights and "the rule of law". The seeking to extradite her, alleging she committed fraud by misleading banks about Huawei's business dealings in Iran.

Beijing will "firmly defend" its companies, a foreign ministry statement said.

For its part, Huawei has hit back, with the Chinese government calling the charges "unfair and immoral" and Huawei stating them as related to a conspiracy to suppress Chinese companies from operating, adding it was disappointed.

China's foreign ministry said in a statement Tuesday that the using its national power to "tarnish the image of and crack down on specific Chinese companies in an attempt to strangle their lawful and legitimate operations".

The Chinese government described the indictments as "deep political motivations and manipulations".

"As I told high-level Chinese law enforcement officials in August, we need more law enforcement cooperation with China", acting Attorney General Matt Whitaker said at a news conference with other Cabinet officials, including Commerce Secretary Wilbur Ross and Homeland Security Secretary Kirstjen Nielsen. It was these charges that led to her arrest in Vancouver in December 2018.

In Europe, the Chinese envoy to the European Union, Zhang Ming, has called the scrutiny of Huawei's activity in Europe "very irresponsible" and threatened "serious consequences to global economic and scientific cooperation" if Huawei is shut out of Europe.

"A key reason for the selection of the vendor and the design of TPG's network was that there was a simple upgrade path to 5G, using Huawei equipment", TPG's announcement said.

"This is not just the matter of Huawei".

Chrystia Freeland says the government has no reason to believe that the 61-year-old's arrest is linked with the cases of two other men detained in China in apparent retaliation for Canada's arrest of a top Huawei Technologies executive. He said China would likely accept such a deal, if it were offered. He said Beijing will see a "link to Chinese-US trade relations".

He said both the United States and China "understand Australia has different equities in the two relationships".

Huawei stands accused of having employees take photos of the robot, make measurements, and even take one of the arms of the robot for closer analysis.

The Justice Department officials provided details from a 10-count grand jury indictment in Seattle, and a separate 13-count case from prosecutors in NY.

AP researcher Yu Bing in Beijing and AP writers Christopher Bodeen in Beijing, Michael Balsamo, Eric Tucker and Christopher Rugaber in Washington, Rob Gillies in Toronto and Tali Arbel in NY contributed.