Huawei: US charges Chinese telecoms giant with stealing trade secrets

Firm ‘and its senior executives repeatedly refused to respect US law and standard international business practices,’ says FBI Director Chris Wray

Acting Attorney General Matthew Whitakers said: 'China should be concerned about criminal activities by Chinese companies.' (REUTERS)

Criminal charges have been unsealed against Chinese tech giant Huawei, two of its subsidiaries and one of its senior executives by the US Justice Department. They are accused of misleading banks about the company’s business and violating US sanctions.

The company has also been charged in a separate case with stealing trade secrets from T-Mobile, federal prosecutors said.

They are seeking to extradite the company’s chief financial officer, Meng Wanzhou who was arrested in Canada last month. She is alleged to have committed fraud by misleading banks about Huawei’s business dealings in Iran.

The criminal charges in Brooklyn and Seattle come as trade talks between China and the US are scheduled for this week.

“As I told high-level Chinese law enforcement officials in August – we need more law enforcement cooperation with China,” acting attorney general Matt Whitaker told a news conference he attended with other cabinet officials, including commerce secretary Wilbur Ross and homeland security secretary Kirstjen Nielsen. “China should be concerned about criminal activities by Chinese companies – and China should take action.”

American prosecutors charge that Huawei used a Hong Kong shell company to sell equipment in Iran in violation of US sanctions. Huawei had done business in Iran through a Hong Kong company called Skycom and alleged that Ms Meng misled US banks into believing the two companies were separate, according to the Justice Department.

The announcement included a 10-count grand jury indictment in Seattle and a separate 13-count case from prosecutors in the Eastern District of New York.

“As you can tell from the number and magnitude of the charges, Huawei and its senior executives repeatedly refused to respect US law and standard international business practices,” said FBI Director Chris Wray.

A Huawei spokesman did not immediately return phone messages seeking comment.

Huawei is the world’s biggest supplier of network gear used by phone and internet companies and has long been seen as a front for spying by the Chinese military or security services.

Prosecutors also alleged that Huawei stole trade secrets, including the technology behind a robotic device that T-Mobile used to test smartphones, prosecutors said. A jury in Seattle ruled that Huawei had misappropriated the robotic technology from T-Mobile’s lab in Washington state.

The Huawei case has set off a diplomatic spat with the three nations, which has threatened to complicate ties between the US and Canada.

US president Donald Trump said he would get involved in the Huawei case if it would help produce a trade agreement with China

He said in December that he would “intervene if I thought it was necessary”.

Associated Press contributed to this report