USA adds new charges to its case against Huawei

  • USA adds new charges to its case against Huawei

USA adds new charges to its case against Huawei

The 16-count superseding indictment also adds a charge of conspiracy to steal trade secrets stemming from the China-based company's alleged long-running practice of using fraud and deception to misappropriate sophisticated technology from US counterparts.

The superseding indictment makes new allegations against the world's largest telecoms equipment maker, including claims that the company successfully engaged in a decades-long effort to steal intellectual property, giving it an unfair advantage over competitors.

As revealed by the government's independent investigation and review of court filings, the new charges in this case relate to the alleged decades-long efforts by Huawei, and several of its subsidiaries, both in the USA and in the People's Republic of China, to misappropriate intellectual property, including from six US technology companies, in an effort to grow and operate Huawei's business.

Why it matters: The superseding indictment could ratchet up the potential penalties against Huawei, which was already facing charges for violating USA sanctions against Iran and North Korea.

A lawyer for Huawei did not immediately return a call seeking comment.

The DoJ said its investigation was continuing. It alleged, among other claims, that Huawei had lied about its relationship with Skycom, which prosecutors said was an "unofficial subsidiary" of Huawei that had assisted Iran in performing domestic surveillance, including against demonstrators in Tehran in 2009.

The U.S. Justice Department has added new criminal charges against Chinese tech giant Huawei and two of its U.S. subsidiaries, accusing the company in a plot to steal trade secrets from competitors in America, federal prosecutors announced Thursday.

Its Chief Financial Officer Meng Wanzhou was arrested in December 2018 in Canada on charges in that indictment. Just recently, it denied allegations from the United States that it uses secret backdoors to access mobile networks around the world.

The British government has sought to limit Huawei's role.

"To obtain the intellectual property of the Victim Companies, [Huawei] sometimes entered into confidentiality agreements with the owners of the intellectual property and then violated the terms of the confidentiality agreements by misappropriating the intellectual property for [Huawei's] own commercial use".

That Huawei indictment is now publicly accessible.