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US Brings New Charges Against Huawei

Chinese tech giant charged with plotting to steal trade secrets from American competitors
By Newser Editors and Wire Services
Posted Feb 13, 2020 2:08 PM CST

(Newser) – The Justice Department has added new criminal charges against Chinese tech giant Huawei and two of its US subsidiaries, accusing the company in a plot to steal trade secrets from competitors in America, federal prosecutors announced Thursday. The company is also accused of installing surveillance equipment that enabled Iran to spy on protesters during 2009 anti-government demonstrations in Iran, and of doing business in North Korea despite US sanctions there, the AP reports. The case comes as the Trump administration is raising national security concerns about Huawei, the world's largest telecommunications equipment manufacturer, and is lobbying Western allies against including the company in wireless, high-speed networks. Trump administration officials, including Cabinet secretaries, have recently leveled national security allegations against Huawei in an effort to encourage European nations to ban the gear from next-generation cellular networks.

The new indictment brought by federal prosecutors in Brooklyn, which includes charges of racketeering conspiracy and conspiracy to steal trade secrets, adds to the legal woes in the US for Huawei, which already faced charges in that district of lying to banks about deals that violated economic sanctions against Iran as well as separate trade secrets theft case in federal court in Seattle. The latest allegations accuse Huawei of plotting to steal the trade secrets and intellectual property of rival companies in the US. In some cases, prosecutors said, Huawei directed and provided incentives its own employees to steal from competitors by offering bonuses to those who brought in the most valuable stolen information. The company also used proxies, including professors at research institutions, to steal intellectual property, prosecutors said.

(Read more Huawei stories.)

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