In the latest allegation against the Chinese telecom equipment manufacturing company on Thursday, February 13, 2020, the US accused Huawei Technologies Co. (Huawei) of stealing trade secrets and helping Iran. Apart from the unsolved case of last year, the Chinese company was accused of the charge for stealing trade secrets from six American tech companies and violating a racketeering law.
US Accuses Huawei Assisting Iran
The US has been constantly spearheading a campaign against Huawei worldwide with throwing allegation that Beijing with the help of the company involved in espionage on several countries. With the growing suspect on Huawei, Washington imposed the company on a trade blacklist last year considering the aspect of national security issues.
Citing the company’s involvement in new activities has amounted to sanctions, the US accused that Huawei helped the Iran government facilitating surveillance equipment in the crackdown of the protestors. The US alleged that Huawei supplied monitoring equipment to Iran which was used to monitor, identify, and detain protesters during the 2009 anti-government demonstrations in Tehran.
In a response, Huawei said in a statement, the latest indictment is “part of an attempt to irrevocably damage Huawei’s reputation and its business for reasons related to competition rather than law enforcement.”
Referring to the racketeering accusation, the company officials stated that it represented “a contrived repackaging of a handful of civil allegations that are almost 20 years old.” Huawei had already pleaded not guilty to the earlier indictment of January 2019, which was charged for financial fraud, violating sanctions against Iran, and obstructing justice.
Additional US Charges Against Huawei
In addition to this, the US charges Huawei for several other theft issues of trade secrets related to internet router source code, cellular antenna technology, and robotics. Washington mentioned Futurewei Technologies Inc. (Futurewei), a subsidiary in the latest allegation in charge related to misappropriating operating system source code for internet routers. In the indictment, Huawei was also accused of selling its cheap versions of routers in the US.
Over other issues relating to recruiting employees, intellectual property rights, and using technology, Huawei has been under the attack of the US. With these underlying charges, U.S. Senate Intelligence Committee chairman, Richard Burr, and vice chairman, Mark Warner said in a joint statement, “The indictment paints a damning portrait of an illegitimate organization that lacks any regard for the law.” Similarly, the Republican and Democratic Senators called the indictment “an important step in combating Huawei’s state-directed and criminal enterprise.”
On Thursday, the US Commerce Department, meanwhile, announced that a temporary license for 45 days was allowed for the US companies to continue their business with Huawei, an opportunity for the companies to find alternatives to Huawei. At the same time, the US urged its allies to impose severe regulations against foreign shipments of Huawei’s products.
Responding to the latest US move, Chinese foreign ministry spokesman, Geng Shuang, in a news briefing on Friday, urged that the US must immediately stop attacking Chinese companies and claimed that such false allegation had instead seriously damaged the United States’ credibility and image globally.
I’m Roshan, a journalist, blogger and music lover. I like covering global news related to finance, business, and technology. Focusing on the collection of true and reliable information, I rely on working by conducting interviews with business leaders and talking to the inside sources of companies.
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