DOJ Charges Chinese Tech Giant Huawei and Its CFO With Stealing Trade Secrets, Misleading Banks About Iran Dealings
Canada, Poland, and the Czech Republic made moves in response to security concerns related to this tech giant.
We have been following the developments related to Canada’s arrest of China’s Huawei Technologies Chief Financial Officer Meng Wanzhou, who faces extradition to the United States on suspicion she violated U.S. trade sanctions against Iran.
The Department of Justice officially unsealed charges against the tech giant, the executive, and several subsidiaries, alleging the company stole trade secrets and misled banks about its business…as well as violating U.S. sanctions.
The sweeping indictments accuse the company of using extreme efforts to steal trade secrets from American businesses — including trying to take a piece of a robot from a T-Mobile lab.
The executive charged is Huawei’s chief financial officer, Meng Wanzhou, who was arrested in Canada last month. The U.S. is seeking to extradite her, alleging she committed fraud by misleading banks about Huawei’s business dealings in Iran.
David Martin, Meng’s lawyer in Canada, didn’t immediately respond to messages seeking comment. Meng is out on bail in Vancouver and her case is due back in court Tuesday as she awaits extradition proceedings to begin.
Meanwhile, the Chinese team arrived in Washington, DC, for critical talks to end the trade war. There are concerns that the charges add uncertainty to the success of the trade talks.
Beijing has denounced the indictment as politically motivated and immoral.
…“Perhaps it is to put on pressure on China, but China’s domestic politics looks so bad if they cut a deal. That doesn’t look good. I wonder about the calculus,” a former senior US trade negotiator said on condition of anonymity.
“If it was still at the USTR {office of the US Trade Representative] I would have guessed this was coming – but the arrest would have been a big surprise. However, the indictment would definitely be disruptive, if I am preparing for the negotiations.”
Our previous reports indicated that China had arrested 3 Canadian citizens in the wake of the arrest of Meng. Subsequently, Prime Minister Justin Trudeau fired Canada’s ambassador to China, John McCallum.
Mr McCallum caused controversy on Tuesday when he publicly argued that the US extradition request for Ms Meng was seriously flawed.
The next day he issued a statement saying that he “misspoke” and regretted that his comments had created “confusion”.
But on Friday he was quoted as saying it would be “great for Canada” if the US dropped the request.
Other countries are making moves against Huawei. Poland will exclude the firm, from its future 5G network in favor of European players.
Polish government officials are talking to European Union and North American allies on the next steps but haven’t determined which telecoms equipment maker might replace Huawei, the sources said.
“Arresting a spy means end of the discussion,” said a government official, who spoke on the condition of anonymity. “I think the Chinese will not be present in 5G in Poland.”
China’s Huawei has been excluded from a Czech tender to build a tax portal after warnings of possible security threats posed by the telecoms supplier.
The Czech Finance Ministry amended a tender for a new tax portal for filing returns, documentation on online registries showed.
The ministry said the tender could “not allow producers that are subject to a current warning by the NUKIB [National Cyber and Information Security Agency],” referring to the Czech cyber security agency.
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Comments
This is an interesting battle to watch unfold. The Chinese play all 9 innings (meaning over decades). While hoping everyone else is playing the current inning (until the next election and another party is in power). It’s a big reason they get do involved in dictatorships. Long term predictability and openness to influence.
There will only be one Donald Trump. We have allowed the left to so infect our young that that The Donald is about as good as it will ever get. The Chi Comms know that. The entire world knows that.
Tick, tick, tick…
I’m not as pessimistic as you are. I think Trump could open the door to a more moderate future than you suggest. That is mostly due to the severe and aggressive tack to the hard left for Dems. The future may not come from the more conservative side of the GOP (if it even exists), but I think it is just as unlikely to come from a “moderate” person running in either party who is more interested in economic growth and deficits than all the diversity tripe. The fabricated diversity crisis is loosing steam quickly. Not in the media. But in the public.
And being on the deficit side of a $600B trade imbalance is the right place to be in a Trade War.
What side you’re on is of no consequence.
“Trade imbalance” is a fraudulent term used by demagogues to exploit economic ignorance.
BTW, the US/Chinese “imbalance” is at a record high.
That’s actually a good, healthy thing.
Annnndddd, this post shows the lie that only tariffs (hidden taxes on Americans) can work magic, that we have no means via sanctions and the application of law to counter the bad behavior of predatory players in international trade.
Somewhere a village is looking for its idiot.
So the Brit soccer hooligan admits he has nutin’ of any value.
Im just back from electrocuting homosexuals (thought I recognised you for a second there rags).
Anyway, police are reporting several villages have filed missing persons reports as their village idiot is still missing in action.
You’re is at the top of the list.
As a public service, set at ease and let them know you’re home.
Good grief. Do you even really study tariffs? Do you even know how they are currently levied and by what countries?
And why are sanctions any more magical as a sole force?
Tariffs are not good tools. Neither are sanctions. But a strategic combination of tools can deliver results. Never 100% of desired results. But a degree better than current.
Beat me to it. It’s not binary.
“Do you even really study tariffs? Do you even know how they are currently levied and by what countries?”
Yes. Of course.
“And why are sanctions any more magical as a sole force?”
Never said, hinted, or implied that. What I wrote suggests both sanctions and legal remedies.
“Tariffs are not good tools. Neither are sanctions.”
Agreed as to the first. Disagree as to the second. I don’t know how “sanctions are not good tools”. Broadly, they have to be based in law and agreements, which is good.
Sanctions are ineffective and possible less effective than tariffs. That is my basis for saying they aren’t a good tool.
One what do you base those two naked assertions?
Tariff (protective) are VERY effective at harming Americans in support of a few favored special interests. That’s about all.