Huawei Denied US Charges of Fraud and Trade Secrets Theft
On Monday, US authorities announced indictments against Huaweii and alleged the Chinese telecom giant for practicing fraud and stealing trade secrets from T-Mobile, a US telecom company.
However, Huawei denied all the accusations, claiming that the company didn’t commit ‘any of the asserted violations’. Huawei also declared in a statement that the company was ‘disappointed to learn of the charges brought against the company today”.
The Chinese authorities denounced the indictments and a spokesperson from the Ministry of Industry and Information Technology called them ‘unfair and immoral’. The foreign ministry of China called on Washington on Tuesday to ‘stop the unreasonable crackdown” on Huawei and other companies. Statements were made by the Chinese authorities, stating that the ‘strong political motivation and political manipulation are behind the indictments.
Regarding the accusations of trade secrets theft, the company claimed that it had settled the dispute with T-Mobile in a civil case in 2017. The Chinese smartphone maker was alleged of having stolen experimental robotic technology from T-Mobile. The technology is termed as Happy which was designed to mimic human fingers. It was used to test the smartphones’ durability. However, Huawei refused the charges and said that the jury found‘neither damages nor wilful and malicious conduct’.
On the contrary, US alleged that Huawei tried to obstruct justice later when T-Mobile threatened to sue the company in Seattle’s federal court. The allegations also include an internal company announced that it offered incentives to the staff for stealing the confidential information from other companies.
Furthermore, Huawei was also accused of using a shell company, Skycome, in Hong Kong to sell equipment in the Middle Eastern country. This would be the violation of US sanctions.
Moreover, the company claimed that it ‘is not aware of any wrongdoing by Ms. Meng’. The chief financial officer and daughter of the founder of company, MengWanzhou were arrested on 1 December in Canada. She was accused of committing fraud by misleading US banks regarding the business dealings of Huawei with Iran.
US President Donald Trump’s administration has recently imposed ‘even stricter measures’ on Iran, which has affected the shipping, banks and oil exports.
These accusations and cases could intensify the tensions between the US and China. US government has also tried to stop US companies and other allied countries’ firms to buy routers and other equipment from Huawei. In fact, many countries including Australia, Germany, New Zealand, and India have suspended the use of Huawei technology.