Washington: The US has charged Chinese telecom giant Huawei with a series of crimes including stealing trade secrets, a move that can escalate hostilities between the world’s biggest economic powers and complicate efforts to negotiate an end to their bruising trade war.
The charges were unveiled ahead of crucial trade talks between American and Chinese officials, January 30 and 31. The charges are likely to raise tensions between China and the US amid a trade war between them.
However, the White House denied Monday that there was any link between the two. The Justice Department unsealed Monday two cases against Huawei that detail a slew of allegations. One indictment accuses Huawei of trying to steal trade secrets from T-Mobile (TMUS), and of promising bonuses to employees who collected confidential information on competitors. A second indictment claims the company worked to skirt US sanctions on Iran.
In its 13-count indictment, the US Justice Department charged Huawei and its chief financial officer (CFO) Meng Wanzhou with financial fraud. Meng was arrested in Canada in December, and the US is looking to extradite her.
Meng, the daughter of the company’s founder, is currently out on bail in Canada. Her case has sparked a major crisis between Ottawa and Beijing.
The indictment also accuses Huawei, its CFO, and other employees to deceive numerous global financial institutions and the US government regarding Huawei’s business activities in Iran.
“Today we are announcing that we are bringing criminal charges against telecommunications giant Huawei and its associates for nearly two dozen alleged crimes,” Acting Attorney General Matthew G Whitaker said Monday.
“As I told Chinese officials in August, China must hold its citizens and Chinese companies accountable for complying with the law,” he added.
Huawei and its CFO broke the US law and have engaged in a fraudulent financial scheme that is detrimental to the security of the United States, said Homeland Security Secretary Kirstjen Nielsen.
Commerce Secretary Wilbur Ross alleged that for years, Chinese firms have broken the US export laws and undermined sanctions, often using the US financial systems to facilitate their illegal activities.
PTI