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US-CHINA-CANADA-TELECOMS-SANCTION-HUAWEI
US charges Huawei in technology theft, sanctions violations
WASHINGTON, Jan 29, 2019 (BSS/AFP) – The US Justice Department on Monday
unveiled sweeping charges against Chinese telecommunications giant Huawei in
two cases likely to ratchet up tensions between the two superpowers —
including that of a top executive arrested in Canada on a US warrant.
The department unveiled 13 charges against Huawei Technologies, its chief
financial officer Meng Wanzhou — the daughter of the company’s founder who
is currently out on bail in Canada — and two affiliates related to violating
US sanctions on Iran.
Meng’s case has sparked a major crisis between Beijing and Ottawa, which is
accused of doing Washington’s bidding.
In addition, 10 US federal charges were filed against two Huawei affiliates
for stealing robot technology from T-Mobile.
“Both sets of charges expose Huawei’s brazen and persistent actions to
exploit American companies and financial institutions, and to threaten the
free and fair global marketplace,” said FBI Director Christopher Wray.
– Extradition request –
Meng — who was arrested in Vancouver on December 1 at Washington’s request
— is expected to fight extradition to the United States, amid heavy pressure
on Canada from Beijing, whose subsequent detention of two Canadians is seen
as an act of retaliation for Meng’s arrest.
Acting US Attorney General Matthew Whitaker said the extradition request
would be sent by a January 30 deadline.
A hearing is set for February 6 in Canada.
Whitaker said there was nothing in the indictment that alleged Chinese
government involvement in either case.
However, he added, “As I told Chinese officials in August, China must hold
its citizens and Chinese companies accountable for complying with the law.”
The broader allegations against Meng, filed in federal court in New York,
had already been revealed in general terms by Canadian authorities.
They allege that between 2007 and 2017, Meng, Huawei and the subsidiaries
sought to mask their business with Iran in violation of US and UN sanctions
on the country.
Meng in particular “repeatedly lied” to bankers about the relationships
between the companies, especially with Skycom, a Huawei affiliate in Iran,
according to the charges.
That violated US laws, the Justice Department said, because the Iran
business involved US-dollar transactions processed by banks through the
United States.
Huawei and the affiliates also lied to US authorities, obstructing the
investigation, they said.
– ‘Bonuses for stealing tech secrets’ –
The second case charged that Huawei made a concerted action to steal
technology related to a phone-testing robot dubbed Tappy from a T-Mobile USA
lab in Washington state.
Engineers of Huawei — which was supplying T-Mobile with phones — took
pictures and made measurements of parts of the robot, “even stealing a piece
of it,” said Whitaker.
The Justice Department charged that the Chinese company had, in July 2013,
offered bonuses to employees “based on the value of information they stole
from other companies around the world, and provided to Huawei via an
encrypted email address.”
The indictments came amid tense trade negotiations between the United
States and China.
Speaking together with Justice Department officials announcing the
indictments, Secretary of Commerce Wilbur Ross said they were “wholly
separate from our trade negotiations with China.”
However, he added: “Commerce will continue to work with our interagency
partners to protect US national security interests.”
BSS/AFP/GMR/1017 hrs