US Probes Huawei for Alleged Trade Secret Theft

China's Foreign Ministry said on Thursday that proposed United States legislation targeting Huawei, ZTE and other Chinese telecommunications equipment companies was due to "hysteria", and urged U.S. lawmakers to stop the bills.

Citing people familiar with the matter, the Journal said that one area of investigation is the technology behind a device that T-Mobile U.S. Inc. used for testing smartphones.

The jury sided with T-Mobile in 2017, saying the theft resulted in Huawei making "hundreds of millions of dollars" from T-Mobile's technology.

While no concrete steps have been decided upon, business daily Handelsblatt reported on Thursday that Chancellor Angela Merkel's administration was actively considering stricter security requirements and other ways to exclude Huawei.

A group of bipartisan senators on Wednesday introduced a bill prohibiting the export of US-produced parts and components to telecommunication companies in China that have violated USA sanctions, Congressman Mike Gallaher's press office said in a release.

The investigation centers on allegations that Huawei stole trade secrets from US business partners, including the technology that T-Mobile used to test smartphones, according to the Journal's report that cited people familiar with the matter. Instead of doing so, ZTE not only failed to reprimand those involved, but continued to pay them full bonuses, lying to US authorities about its actions. Meng is facing charges in the USA related to possible violations of trade sanctions on Iran. ZTE Corp was projected to go under if it were not for President Donald Trump lifting the ban to facilitate further negotiations in the trade war.

Tensions have been heightened by the arrest of Huawei's chief financial officer in Canada for possible extradition to the United States.


Many within the Trump administration have attempted to expose China's intellectual property theft of US businesses, and have called on the president to apply harsher duties on Chinese imports.

The company denies this.

Last week, Poland arrested a local Huawei executive and a former intelligence official on allegations of spying for China.

Regardless of what actions have or have not now been taken, governments around the world appear to be increasingly hesitant to cooperate with Chinese corporations. T-Mobile security cameras even captured a Huawei employee disassembling part of "Tappy", and placing it into his laptop bag.

The Justice Department declined to comment.

Federal prosecutors are reportedly launching an investigation into Huawei over allegations it stole trade secrets from USA companies.


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