U.S. DoJ Charges Chinese Smartphone Company Huawei With Stealing Trade Secrets and Fraud

Discussion in 'Politics, Religion, Social Issues' started by MacRumors, Jan 28, 2019.

  1. MacRumors macrumors bot


    Apr 12, 2001

    The United States Justice Department today announced a series of criminal charges against Chinese smartphone maker Huawei for stealing trade secrets, bank fraud, wire fraud, and obstructing justice.

    In the first of two indictments unsealed this afternoon, the Justice Department accuses Huawei, Huawei chief financial officer Meng Wanzhou, and two affiliates of bank and wire fraud.


    Huawei is said to have misled a global bank and U.S. authorities about its relationship with subsidiaries Skycom and Huawei Device USA to conduct business in Iran despite sanctions, conducting millions of dollars in business. Huawei is accused of lying to the government, destroying documents, and attempting to move key Huawei employees back to China to impede the investigation.

    A second indictment accuses Huawei of stealing trade secrets, wire fraud, and obstructing justice for stealing robotic technology from T-Mobile U.S. for testing smartphone durability.

    Huawei violated confidentiality agreements with T-Mobile when it stole information on "Tappy," a T-Mobile robot designed to mimic human fingers to test smartphones back in 2012. Huawei employees secretly took photos of the robot, measured it, and stole components. T-Mobile won a $4.8 million lawsuit against Huawei in 2017 over the dispute.

    All in all, the U.S. filed 10 charges related to trade secrets for the T-Mobile theft and 13 charges related to sanction violations against Huawei. The U.S. is seeking the extradition of Huawei CFO Meng Wanzhou from Canada, where she was arrested in December.

    FBI Director Christopher Wray said that the charges levied against Huawei "expose brazen and persistent actions to exploit American companies and financial institutions and threaten the free and fair global marketplace."
    The charges filed today against Huawei will likely escalate U.S.-China tensions, though the Department of Justice said that the indictments are "wholly separate" from trade negotiations with China, which are set to continue this week.

    The U.S. has already banned government employees and contractors from using devices from Huawei and ZTE, and legislation has been introduced that would ban the export of U.S. parts and components to Chinese telecommunications companies in violation of U.S. export control or sanction laws.

    Huawei is the largest smartphone manufacturer in China and a major Apple competitor in the country. Few Huawei products are available in the U.S., however, because of the aforementioned cybersecurity concerns.

    Note: Due to the political nature of the discussion regarding this topic, the discussion thread is located in our Politics, Religion, Social Issues forum. All forum members and site visitors are welcome to read and follow the thread, but posting is limited to forum members with at least 100 posts.

    Article Link: U.S. DoJ Charges Chinese Smartphone Company Huawei With Stealing Trade Secrets and Fraud
  2. 341328 Suspended

    Jul 18, 2009
  3. macguru212 macrumors 6502


    Apr 17, 2009
  4. givemeanapple macrumors Demi-God


    Oct 2, 2016
  5. AngerDanger macrumors 601


    Dec 9, 2008
    It’s not often your read a MacRumors article that makes you pinch yourself to see if you’re fever-dreaming.
  6. lunarworks macrumors 68000

    Jun 17, 2003
    Toronto, Canada
    Huawei is shady as hell. They hacked into Nortel for years, stealing all sorts of sensitive material, and strongly contributed to that company's downfall. The more I learn about them, the less I like them.
  7. Mac Fly (film) macrumors 65816

    Mac Fly (film)

    Feb 12, 2006
    And the Wall St. gangsters who knowingly destroyed the global economy for personal profit? Oh yeah, they got a bailout.
  8. Thunderbird macrumors 6502a


    Dec 25, 2005
    Canada has been caught up in this since we arrested Meng Wanzhou, and we will be obligated to extradite her now. It has made the Trudeau government look like a pawn for the US and strained our relations with China.
  9. 0947347 Suspended

    Aug 29, 2015
    In the case of DoJ and Huawei,
    it takes two to tango.

    And my usual sarcasm corner:
    I am sure it has got absolutely nothing to do with the US government trying to sanction China (and other countries) for whatever existing (and nonexistent) reasons.
  10. macduke macrumors G4


    Jun 27, 2007
    Central U.S.
    China wouldn’t know a free and fair global market if it hit them in the face—and it’s about to!
  11. trusso macrumors 6502

    Oct 4, 2003
    Business and international relations always remind me of a bunch of pituitary cases locked in an underground bunker.

  12. shansoft macrumors 6502

    Apr 24, 2011
    Didn't they also stole all their telecom and networking infra design from Cisco as well?

    ****** company
  13. JPack macrumors 601


    Mar 27, 2017
    I doubt that will happen given Canada doesn't have technology sanctions with Iran. It may violate U.S. law, but the extradition treaty requires Canada to have a similar law, which Canada doesn't.

    Trying to jail the CFO of a company because other Huawei employees allegedly tried to steal a robot is laughable.
  14. busyscott macrumors regular


    Sep 29, 2015
    I wonder if this is the “government owned company” that’s refusing to give docs over in the Mueller investigation.
  15. brendu macrumors 68020

    Apr 23, 2009
    Chinese company cheats, steals, and lies? Is anyone here surprised? Frack the Chinese. I wish we could completely abandon them for all manufacturing (not just apple). They are NOT our friends. The Chinese laugh at us every day for being so stupid as to let them do this.
  16. twennywonn macrumors regular

    Mar 15, 2012
  17. Rojaaemon macrumors regular

    Aug 27, 2016
    No one does crony capitalism like the capitalists of the Communist Party of China..
  18. Macaholic868 macrumors 6502


    Feb 2, 2017
    I hate this notion of corporate personhood. You can indict individuals for breaking the law but by allowing the indictment of corporations the C level executives directly responsible are let off the hook. They just laugh, plead guilty and pay the fines with company funds. They still get their golden parachute. If this were an American firm I doubt the executive would’ve been charged.
  19. Wando64 macrumors 6502a


    Jul 11, 2013
    Well, someone is going to learn something.
    I am not entirely sure it will be China though.
  20. Kabeyun macrumors 68020


    Mar 27, 2004
    Eastern USA
    I wonder what the Chinese retaliation will be.
  21. apolloa macrumors G4

    Oct 21, 2008
    Time, because it rules EVERYTHING!
    Not surprised by this, it’s a shame this company has in the West been accused of all sorts of shenanigans when they make pretty good phones. It seems they are justified accusations too.
  22. WoodpeckerBaby macrumors 6502


    Aug 17, 2016
  23. 2GoldFish macrumors regular


    Feb 1, 2012
  24. sidewinder3000 macrumors 6502a


    Jan 29, 2010
    Would be great if this was the beginning of a crackdown on espionage and illegal activity by the Chinese government against US corporations. It’s a travesty that a government with such vast resources is attacking American businesses with no consequences.

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72 January 28, 2019