US Files Criminal Case Against Huawei, Tech Company Denies Fraud Charges

The filing of criminal charges against Chinese telecom giant Huawei by the U.S Justice Department has escalated U.S-China trade tensions.

The action against the Chinese tech giant also casts a shadow on the proposed trade talks between Washington and Beijing aimed at de-escalating the debilitating trade war. The charge sheet also seeks the extradition of the CFO already arrested in Canada.

“Today we are announcing that we are bringing criminal charges against telecommunications giant Huawei and its associates for nearly two dozen alleged crimes,” said acting Attorney General Matthew Whitaker in a statement.

In another press conference, FBI Director Christopher Wray said that Huawei “relied on dishonest business practices that contradict the economic principles that have allowed American companies and the United States to thrive.”

Charges of stealing trade secrets and money laundering

The cases against Huawei unveiled by the Justice Department carry many charges. One allegation is that Huawei attempted theft of trade secrets from T-Mobile and encouraged its employees to extricate secret information on competitors. The second charge says Huawei sought to violate US sanctions on Iran and indulged in money laundering.

The indictment mentions a Huawei employee having entered a T-Mobile testing lab to take out a proprietary robot arm. It said Huawei was attempting to lift the sensitive technology of T-Mobile's smartphone testing mechanisms and it revealed a culture of deception followed by the Chinese tech giant, reports Ars Technica.

Formal charges have been slapped against Meng Wanzhou, Huawei's chief financial officer. Meng is already under arrest in Canada and the U.S is seeking her extradition.

In a statement, Huawei denied any wrongdoing and expressed disappointment at the charges. “The company denies that it or its subsidiary or affiliate have committed any of the asserted violations of US law set forth in each of the indictments, is not aware of any wrongdoing by Ms. Meng, and believes the US courts will ultimately reach the same conclusion,” it added.

The US defaming Chinese companies

In an angry reaction, China said the criminal charges on the Chinese company were an act of the United States that amounted to using state power to smear and stifle Chinese companies in an “attempt to kill their normal and legal business operations."

Geng Shuang, spokesman of Chinese foreign ministry said in a statement that the U.S must end “unreasonable suppression of Chinese companies” and withdraw the arrest warrant against CFO Sabrina Meng Wanzhou.

Shuang also alleged political motivation and manipulation behind the charge sheet against Huwaei and warned that China will defend the legitimate rights of Chinese companies with all its might.