Months after the U.S. and China intensified their trade disputes into a battle of tariffs, a well-known Chinese telecom company is accused of engaging in unlawful practices against its American business partners.
According to an investigation by the Wall Street Journal, Huawei, the Shenzhen-based conglomerate, allegedly stole trade secrets from several U.S. companies, including one case in Seattle where the Chinese company allegedly misappropriated robotic technology from T-Mobile. U.S. prosecutors could soon issue indictments, the report said.
“The investigation grew in part out of civil lawsuits against Huawei, including one in which a Seattle jury found Huawei liable for misappropriating robotic technology from T-Mobile’s Bellevue, Washington, lab, the people familiar with the matter said,” according to the Journal report, which cited unnamed sources.
The investigation began when prosecutors examined a lawsuit that T-Mobile brought against Huawei in 2014, according to the Journal. The U.S. Department of Justice declined comment, but Huawei spokespeople told the Journal that Huawei and T-Mobile “settled their disputes in 2017” and admitted two employees did act improperly.
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The investigation comes in the midst of several other allegations against the Chinese company and during an ongoing dispute over strict tariffs imposed by both China and the U.S. In December, Huawei’s chief financial officer was arrested in Vancouver, Canada, at the request of the United States, for possible violations of trade sanctions on Iran. In January, Polish security services arrested another Chinese businessman from Huawei. The accusations were also related to allegedly spying for the Chinese intelligence services.
For years the U.S. has accused Beijing and Chinese companies of engaging in intellectual property theft. Washington also accuses Beijing of illegally subsidizing its corporations and engaging in trade practices that hurt American companies wanting to do business in China. Huawei is the world’s largest telecommunications equipment manufacturer.
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U.S. Reportedly Launches Criminal Probe of Huawei for Alleged Theft of Trade Secrets originally appeared on usnews.com
