US brings new charges against Chinese tech giant Huawei

The Justice Department has added new criminal charges against Chinese tech giant Huawei and two of its United States subsidiaries, accusing the company in a plot to steal trade secrets. (AP)
Short Url
Updated 14 February 2020

US brings new charges against Chinese tech giant Huawei

  • The company issued a statement Thursday evening disputing the allegations and calling them “without merit”
  • The new allegations come as the Trump administration raises national security concerns about Huawei

WASHINGTON: The Justice Department has added new criminal charges against Chinese tech giant Huawei and several subsidiaries, accusing the company of a brazen scheme to steal trade secrets from competitors in America, federal prosecutors announced Thursday.

The new indictment also alleges the company provided surveillance equipment to Iran that enabled the monitoring of protesters during 2009 anti-government demonstrations in Tehran, and that it sought to conceal business that it was doing in North Korea despite economic sanctions there.

The company issued a statement Thursday evening disputing the allegations and calling them “without merit.”

The new allegations come as the Trump administration raises national security concerns about Huawei, the world’s largest telecommunications equipment manufacturer, and aggressively lobbies Western allies to bar the company from wireless, high-speed networks.

The superseding indictment, brought by federal prosecutors in Brooklyn, adds to the company’s legal woes in the US It adds charges of racketeering conspiracy and conspiracy to steal trade secrets to an existing criminal case in New York, where the company already faces charges of lying to banks about deals that violated economic sanctions against Iran.

Federal prosecutors in Seattle have brought a separate trade secrets theft case against the company. Meng Wanzhou, a senior Huawei executive and the daughter of the company’s founder, is accused of making false representations to banks about Huawei’s relationship with its Iran-based affiliate. She was arrested in
Vancouver, British Columbia, and has yet to be extradited to the US.

The latest indictment, an update of a case first filed last year, accuses Huawei of plotting to steal the trade secrets and intellectual property of rival companies in the US.

In some instances, prosecutors said, Huawei recruited employees of competitors to steal intellectual property. The company also provided incentives to its own employees by offering bonuses to those who brought in the most valuable stolen information, and it used proxies, including professors at research institutions, in the pursuit of inside information, prosecutors said.

The stolen information included antenna and robot testing technology as well as user manuals for Internet routers. One goal of the theft, the Justice Department said, was to allow Huawei to save on research and development costs. The indictment details efforts to steal from a half dozen companies.

In one May 2013 episode, according to the indictment, a Huawei engineer removed a robot arm from the laboratory of a rival company based in Washington state, stashing the item in a laptop bag. The engineer emailed photographs and measurements of the arm to others at Huawei before the arm was returned to the company, which had discovered the theft.

At a 2004 trade show in Chicago, a Huawei employee was found in the middle of the night in the booth of a technology company, “removing the cover from a networking device and taking photographs of the circuitry inside,” prosecutors said. The employee wore a badge that listed his employer as “Weihua,” or Huawei spelled with its syllables reversed.

The indictment also lays out steps that the company to conceal its business dealings with Iran and North Korea, including by referring to both countries in internal documents by their code names.

In a statement, Huawei called the new indictment “part of the Justice Department’s attempt to irrevocably damage Huawei’s reputation and its business for reasons related to competition rather than law enforcement.”

“These new charges are without merit and are based largely on recycled civil disputes from last 20 years that have been previously settled, litigated and in some cases, rejected by federal judges and juries,” it said. “The government will not prevail on its charges, which we will prove to be both unfounded and unfair.”

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.

Secretary of State Mike Pompeo and Defense Secretary Mark Esper made the pitch to Western allies during a trip to Munich this week. Attorney General William Barr, in a speech last week, lamented what he said was China’s aspiration for economic dominance and proposed that the US invest in Western competitors of Huawei.

The administration’s national security adviser, Robert O’Brien, asserted this week that Huawei can secretly tap into communications through the networking equipment it sells globally. The company disputes that, saying it “has never and will never covertly access telecom networks, nor do we have the capability to do so.”


US officials block police ‘extreme tactics’ as protests enter 12th day

Updated 30 min 7 sec ago

US officials block police ‘extreme tactics’ as protests enter 12th day

  • A federal judge in Denver ordered city police to stop using tear gas, plastic bullets and other ‘less-than-lethal’ devices
  • Two police officers in Buffalo, New York, were suspended without pay on Thursday

WASHINGTON: Officials across the United States are moving to rein in police following accusations of excessive force being used against demonstrators, with protests over the killing of a black man in custody set to enter their 12th day on Saturday.
George Floyd, 46, died on May 25 in Minneapolis after a police officer pinned him to the ground with a knee to the neck for nearly nine minutes.
North Carolina Governor Roy Cooper has ordered that all flags at state facilities be lowered to half-staff from sunrise to sunset on Saturday in honor of Floyd, who was originally from the state’s Fayetteville city.
On Friday, marches and gatherings took place in Atlanta, Los Angeles, Minneapolis, Miami, New York and Denver, among other places, while protesters massed again, in the rain, in front of the White House. The night-time protests were largely peaceful but tension remains high even as authorities in several places take steps to reform police procedures.
A federal judge in Denver ordered city police to stop using tear gas, plastic bullets and other “less-than-lethal” devices such as flash grenades, with his ruling citing examples of protesters and journalists being injured by police.
“These are peaceful demonstrators, journalists, and medics who have been targeted with extreme tactics meant to suppress riots, not to suppress demonstrations,” US District Judge R. Brooke Jackson wrote in the ruling.
In Minneapolis, Democratic city leaders voted to end the use of knee restraints and choke-holds, where pressure is applied to the neck, while California Governor Gavin Newsom said he would end state police training of carotid restraints similar to the technique used on Floyd.
In New York, Governor Andrew Cuomo said his state should lead the way in passing “Say Their Name” reforms, including making police disciplinary records publicly available as well as banning choke-holds.
“Mr Floyd’s murder was the breaking point,” Cuomo, a Democrat, said in a statement. “People are saying enough is enough, we must change.”
Black Lives Matter activists have called for cities to defund police departments. Los Angeles Mayor Eric Garcetti, a Democrat who in April proposed increasing law enforcement funding, this week reversed course and said he would seek some $150 million in cuts to the Los Angeles Police Department.

Opinion

This section contains relevant reference points, placed in (Opinion field)


In another sign of how attitudes have changed, National Football League (NFL) Commissioner Roger Goodell said the league had made mistakes in not listening to players, in a video denouncing racism in the United States.
The NFL has been locked in a debate with players over kneeling protests during the playing of the national anthem.
Two police officers in Buffalo, New York, were suspended without pay on Thursday and placed under investigation after a video showed them shoving a 75-year-old man to the ground.
But the decision was met with pushback from the officers’ colleagues, with all 57 members of the police tactical unit quitting in protest at their treatment.
The demonstrations have erupted as the public and businesses struggle to recover from sweeping lockdowns imposed to stop the spread of the novel coronavirus. Disease experts have said the protests could spark new outbreaks.
Washington Mayor Muriel Bowser, who has sparred with US President Donald Trump over his sometimes heavy-handed response to the rallies and marches in the nation’s capital, had the slogan “Black Lives Matter” painted in massive yellow letters on a street leading to the White House.
After nightfall, Bowser had light projections spelling out the words beamed onto nearby buildings, which she said on Twitter was a “night light” aimed at Trump.