US Justice Department accuses Huawei of fraud, intellectual property theft
The U.S. Justice Department has filed several federal charges against Chinese telecoms giant Huawei. The move comes just two days before.... Washington and Beijing are scheduled for their next round trade talks.
Ro Aram reports.
Monday's move could potentially complicate efforts by Washington and Beijing to negotiate an end to their trade war.
It could also complicate matters between China and Canada, as the Justice Department also charged Huawei's chief financial officer, Meng Wanzhou, who was arrested in Canada last month on a U.S. request.
Huawei was charged with accusations of bank and wire fraud, as well as trying to steal trade secrets from rival T-Mobile and giving incentives to employees to carry out such illicit activities.
Others include working to skirt U.S. sanctions on Iran.
Washington claims Huawei misled the U.S. and a global bank about its relationship with an Iranian affiliate.
"By claiming that Skycom was a separate company and not an affiliate of Huawei which it actually controlled Huawei allegedly asserted that all of its Iranian business was in compliance with the American sanctions. These alleged false claims led banks to do business with the company and therefore to unknowingly violate our laws…"
Both Huawei and Ms Meng deny the allegations.
Washington's crackdown on Huawei began about ten years ago amid concerns the Chinese government could use the firm's technology for spying.
Huawei has insisted it is not under government control. U.S. Commerce Secretary Wilbur Ross, meanwhile, insisted Monday's indictment was separate from on-going trade talks with Beijing.
President Trump will meet Chinese Vice Premier Liu He this week in Washington to try to resolve the trade dispute.