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US adds new charges to its case against Huawei

US adds new charges to its case against Huawei”

The latest allegations accuse Huawei of plotting to steal the trade secrets and intellectual property of rival companies in the U.S. In some cases, prosecutors said, Huawei directed and provided incentives its own employees to steal from competitors by offering bonuses to those who brought in the most valuable stolen information.

The United States government on Thursday added fresh charges to its case against Chinese smartphone maker Huawei Technologies Co Ltd - a case that has angered China and hurt US-Chinese diplomatic relations.

The Department of Justice and the Federal Bureau of Investigation have filed 16 new criminal charges against Huawei, accusing the Chinese tech giant of plotting to steal trade secrets.

A U.S. indictment unsealed in NY alleges Huawei and its proxies conspired "to misappropriate intellectual property" from six USA firms as part of a strategy to grow and become the world's largest telecom equipment maker, the Justice Department said.

The sanctions are aimed at blocking Huawei from getting any U.S. telecom equipment contracts and prevent the transfer of American technology to the Chinese firm.

The indictment also alleges that Huawei "engaged in a pattern of obstruction" to mislead U.S. authorities, and advised employees to hide their employment with the company during encounters with law enforcement officials.

The trade secret theft relates to internet router source code, cellular antenna technology and robotics.

That Huawei indictment is now publicly accessible.

In the earlier indictment, Meng and Huawei are accused of conspiring to defraud HSBC and other banks by misrepresenting Huawei's relationship with a company that operated in Iran.

"To obtain the intellectual property of the Victim Companies, [Huawei] sometimes entered into confidentiality agreements with the owners of the intellectual property and then violated the terms of the confidentiality agreements by misappropriating the intellectual property for [Huawei's] own commercial use". CFO Wanzhou Meng is now in Canada fighting extradition to the USA, with the first stage of her hearing beginning last month.

The company is also accused of installing surveillance equipment that enabled Iran to spy on protesters during 2009 anti-government demonstrations in Iran, and of doing business in North Korea despite US sanctions there.

An indictment previously unveiled in January 2019 charged the company and its affiliates with committing bank fraud related to violations of Iran sanctions.

Senators Richard Burr and Mark Warner, members of the Senate Intelligence Committee, welcomed news of the indictment.

Huawei has yet to make a statement on the formal indictment. "It uses these tactics indiscriminately against competitors and collaborators alike".



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