U.S. Charges Huawei with Fraud
CBJ — The United States has announced criminal charges against China’s Huawei Technologies, escalating a fight with the world’s biggest telecommunications equipment maker and coming days before trade talks between Washington and Beijing.
Canada has found itself caught in between the nasty dispute after it arrested Huawei CFO Meng Wanzhou in Vancouver in December at the request of U.S. authorities. Since then, relations between Canada and China have deteriorated. Several Canadians have been detained as a retaliatory measure for Meng’s arrest. Meng is the daughter of Huawei’s founder.
The U.S. Justice Department charged Huawei and Meng with conspiring to violate U.S. sanctions on Iran by doing business with Tehran through a subsidiary it tried to hide.
In a separate case, the U.S. Justice Department said Huawei stole robotic technology from carrier T-Mobile. Huawei has said that the two companies settled their disputes in 2017.
U.S. Commerce Secretary Wilbur Ross said the Huawei charges are “wholly separate” from the trade negotiations.
U.S. President Donald Trump previously stated he could intervene in the Meng case if it would serve national security interests or help close a trade deal with China.
The Trump administration is trying to prevent American companies from buying Huawei routers and switches and pressing allies to do the same. U.S. security experts are concerned that the equipment could be used to spy on the United States.
Canada just recently announced a research deal with Nokia of Finland to develop its 5G network. For many months it had been assumed Huawei was the front-runner to land that deal.