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DOJ Indicates Tech Giant Huawei Right Before China Trade Talks Continue – Talking Points Memo



WASHINGTON (AP) – The Justice Department revealed criminal charges against Chinese tech giant Huawei, two of its subsidiaries and a senior manager, accused of misleading banks about the company's business and violating US sanctions.

The company is also accused in a separate case of T-Mobile stealing business secrets, according to federal prosecutors.

Prosecutors are seeking to extradite corporate finance manager Meng Wanzhou and claim that she committed fraud by misleading banks about Huawei's business actions in Iran. She was arrested on December 1 in Canada.

U.S. Prosecutors charge Huawei to use a Hong Kong company to sell equipment in Iran in violation of US sanctions. Huawei had been doing business in Iran through a Hong Kong company called Skycom, claiming that Meng was misleading US banks to believe that the two companies were separate according to the Ministry of Justice.

Huawei is the world's largest provider of networking equipment used by telephone and internet businesses and has long been seen as a front to spy on the Chinese military or security services.

Prosecutors also claim that Huawei stole business secrets, including the technology behind a robotic device, which T-Mobile used to test smartphones, prosecutors said. A jury in Seattle stated that Huawei had misappropriated robotic technology from T-Mobile's lab in the Washington state.

The Huawei case has rejected a diplomatic spear with the three nations who have threatened to complicate the ties between the United States and Canada. President Donald Trump said he would be involved in the Huawei case if it were to help draft a trade deal with China and told Reuters in an December interview that he would "intervene if I thought it was necessary."

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