Bad Day for Huawei: China Giant Charged by US with Stealing Trade Secrets and Violated Iran Sanctions

199

The United States has filed criminal charges against , escalating its fight against the Chinese tech giant and potentially complicating efforts by Washington and Beijing to negotiate an end to their bruising trade war.

Keep on reading Nexter.org to know more about it.

What’s going on?

The Justice Department on Monday opened two cases against that detail a slew of allegations. One indictment accuses 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.

The agency also revealed formal charges against Meng Wanzhou, Huawei’s chief financial officer. Meng was arrested in Canada in December, and the United States is looking to extradite her.

huawei-wanzhou-meng-us-charges-photo

Source: EPA/Jiji

“Today we are announcing that we are bringing criminal charges against telecommunications giant and its associates for nearly two dozen alleged crimes,” Acting Attorney General Matthew Whitaker said in a statement. “China must hold its citizens and Chinese companies accountable for complying with the law.”

FBI Director Christopher Wray said at a press conference that “relied on dishonest business practices that contradict the economic principles that have allowed American companies and the United States to thrive.”

huawei-wanzhou-meng-us-charges-photo

Source: Joshua Roberts/Reuters

“The prosperity that drives our economic security is inherently linked to our national security,” Wray said. “And the immense influence that the Chinese government holds over Chinese corporations like  represents a threat to both.”

said Tuesday it was “disappointed” by the US move to bring charges against it.

“The company denies that it or its subsidiary or affiliate have committed any of the asserted violations of US law set forth in each of the indictments, is not aware of any wrongdoing by Ms. Meng, and believes the US courts will ultimately reach the same conclusion,” it said in a statement.

huawei-wanzhou-meng-us-charges-photo

Source: Getty Images

What’s in the big -Meng indictment

The bulk of the charges stem from a scheme to conceal its business activities in Iran, in violation of US sanctions against the Middle Eastern nation since about 2007.

allegedly lied about its relationship with a subsidiary called Skycomm Inc, which did business in Iran. misrepresented the relationship to US banks, which would not have legally been able to do business with the telecom giant had they known. Instead, was able to conduct millions in US-dollar transactions, all while running afoul of US law.

“These alleged false claims led banks to do business with the company, and therefore to unknowingly violate our laws,” acting Attorney General Matthew Whitaker at a Monday press conference.

Meng, according to prosecutors, also lied about the relationship between and Skycomm, including in a 2013 presentation to one of ’s major banking partners.

Prosecutors also say that when became aware of this investigation in 2017, the company tried to obstruct justice by “destroying and concealing evidence.”


MORE HOT NEWS

Like this post? Let us know!
  • CoolAF (0%)
  • Cool (0%)
  • Whatever (0%)
  • Boring (0%)
  • WTF (0%)
Summary
Bad Day for Huawei: China Giant Charged by US with Stealing Trade Secrets and Violated Iran Sanctions
Title
Bad Day for Huawei: China Giant Charged by US with Stealing Trade Secrets and Violated Iran Sanctions
Description
The United States has filed criminal charges against Huawei, escalating its fight against the Chinese tech giant and potentially complicating efforts by Washington and Beijing to negotiate an end to their bruising trade war. Keep on reading Nexter.org to know more about it.
Nexter.org
Nexter.org
Nexter.org
https://nexter.org/wp-content/uploads/2018/04/logo_nexterbg.jpg

More News from Nexter