USA pursuing charges against Huawei for alleged trade secret theft, report says

USA pursuing charges against Huawei for alleged trade secret theft, report says

Those trade secrets include technology related to a robotic device that T-Mobile used to test smartphones, The Wall Street Journal reported Wednesday. The report could not be immediately confirmed.

The tensions come amid a backdrop of President Donald Trump's efforts to get more manufacturing on United States soil and slap hefty tariffs on Chinese goods for what he claims are unfair trade practices by Beijing.

It's unclear how many more damages Huawei may have to pay now that a criminal investigation is getting underway, but we'll be sure to follow this and see where things go from here. Last week, a company employee was arrested in Poland.

Jinhua, which has denied any wrongdoing, was put on a list of entities that can not buy goods from US firms.

"Huawei is effectively an intelligence-gathering arm of the Chinese Communist Party whose founder and CEO was an engineer for the People's Liberation Army", Senator Cotton wrote in a statement.

In addition to allegations of sanctions-busting and intellectual property theft, Washington has been pressing allies to refrain from buying Huawei's switches and other gear because of fears they will be used by Beijing for espionage.

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Huawei's founder, Ren Zhengfei, denied this week his company was used by the Chinese Government to spy.

The case of Meng, under house arrest awaiting proceedings, has inflamed US-China and Canadian-China relations, and Ottawa has said 13 Canadians have since been detained by Beijing, including one sentenced to death on drug trafficking charges.

China subsequently detained two Canadians, raising diplomatic tensions between China and Canada, and drawing in Western allies such as the U.S. and Australia.

A Huawei spokesman and a spokeswoman for the U.S. attorney in the western district of Washington declined to comment.

According to T-Mobile's original filing in the suit, "Huawei initially tried to cover up its actions but ultimately admitted that its employees misappropriated parts and information about T-Mobile's robot in coordination with Huawei R&D so that Huawei could build and improve its own testing robot". The carrier used a robot called "Tappy" to perform Quality Control (QC) tests on the handsets that it carried.

In one alleged instance, two Huawei employees slipped a third one into the testing lab to take unauthorized photos of the robot. Although Huawei lost the case, the jury reportedly didn't find Huawei's misappropriation as "willful and malicious" as T-Mobile alleged.

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