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U.S. Accuses Huawei with Iran Sanction Breaches, Fraud, and Stealing Trade Secrets

The Trump administration revealed criminal charges against Chinese tech giant, Huawei, on Monday. The dramatic move can raise tensions on the eve of trade talks between Washington and Beijing. The U.S. Department of Justice claimed Huawei on account of stealing trade secrets, wire fraud, and obstruction of law. A 10-count accusation claims Huawei took trade secrets from another mobile company T-Mobile previously in 2012. At that time, Huawei offered perks of additional bonus to the employees for stealing the information. A 13-count accusation claimed four suspects with financial fraud. The group of four include Huawei’s Chief Financial Officer Meng Wanzhou. The accused defendants also include associated with Huawei USA and Skycom. Acting Attorney General Matthew Whitaker stated that the Justice Department is trying to deport Meng from Canada.

The agency claims that the Chinese tech giant gave a false account of an Iranian affiliate, Skycom. The U.S. has sanctions against doing business in Iran, and the company side-stepped the jury. According to lawmakers, Huawei manipulated its relation with Skycom. The company permitted Iranian company to work with banks and officials. The Department of Justice said Huawei purposefully planned to steal the intellectual property of an American company. Huawei conspired the move to undermine the free and fair marketplace. The allegation also claims Huawei for destroying proofs and departing employees from the U.S.

Commerce Secretary Wilbur Ross, said Chinese companies breached US’ export laws and undermined sanctions for many years. The firms often used U.S. financial systems to simplify their wrong moves. But he says this is going to end now. Christopher Wray, FBI Director, said Huawei overlooked the laws of America and standard global business practices. On the other hand, Huawei said the company disappointed to learn of the claims filed against it. Besides, China’s industry ministry official said the accusation against the company is unfair and immoral. However, Huawei is the second world’s largest supplier of smartphones. The company plays a crucial role in developing the next generation network of cell phones across the world. The U.S. has already prohibited Huawei from selling networking equipment in the country. As a result, many other countries stopped working with the company.

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