United States files superseding indictment against Huawei, CFO Meng

U.S. Charges 5G Giant Huawei With Racketeering and IP Theft

Prosecutors said Huawei had violated the terms of partnerships with USA companies and stolen trade secrets such as source code and robot technology.

The allegations come a year after the DoJ charged Huawei and Meng Wanzhou, the company's chief financial officer and the daughter of Huawei's founder Ren Zhengfei, of fraud and of circumventing sanctions.

"T$3 he new charges in this case relate to the alleged decades-long efforts by Huawei, and several of its subsidiaries, both in the U.S. and in the People's Republic of China, to misappropriate intellectual property, including from six U.S. technology companies, in an effort to grow and operate Huawei's business", said U.S. Attorney Richard Donoghue.

Huawei, one of the largest tech firms and a major telecom equipment maker, has been blacklisted by Washington amid concerns over its ties to the Chinese government and intelligence services.

These charges are in addition to previous charges on Huawei relating to violations of US sanctions on Iran in an existing indictment.

The latest allegations accuse Huawei of plotting to steal the trade secrets and intellectual property of rival companies in the U.S. In some cases, prosecutors said, Huawei directed and provided incentives its own employees to steal from competitors by offering bonuses to those who brought in the most valuable stolen information.


According to the indictment, Huawei entered into confidentiality agreements with U.S. tech firms and then violated those deals.

The earlier charges against Meng allege she lied to the HSBC bank about Huawei's relationship with its Iran-based affiliate Skycom, putting the bank at risk of violating U.S. sanctions against Tehran. CFO Wanzhou Meng is now in Canada fighting extradition to the USA, with the first stage of her hearing beginning last month.

Huawei is accused of recruiting employees of other companies and "directing them to misappropriate their former employers' intellectual property".

In the updated indictment, the USA accuses Huawei of racketeering and trade secret theft, and gives more detail about the firm's efforts to evade U.S. rules on doing business with Iran and North Korea.

Huawei has yet to make a statement on the formal indictment.

The company also used proxies, including professors at research institutions, to steal intellectual property, prosecutors said. "It uses these tactics indiscriminately against competitors and collaborators alike".

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