The US Department of Justice has released charges against the Chinese after news of Huawei allegations on Wednesday. At the same time, the Ministry of Commerce announced the extension of the exemptions for the company.
Security and privacy: The U.S. Department of Justice has tightened its charges against the Chinese company Huawei. The world's largest telecom supplier has been accused of sustained industrial espionage and theft of intellectual property for years. The company is therefore also being sued under an organized crime law, the U.S. Department of Justice said on Thursday.
In addition, Huawei is again accused of violating US sanctions against Iran and North Korea. The new lawsuit against the second largest mobile phone manufacturer is also directed against subsidiaries and the daughter of the founder, CFO Meng Wanzhou, who is detained in Canada.
The new allegations are about Huawei's “decades-long efforts” to illegally seize intellectual property, “to expand and do Huawei's business,” the Justice Department said. Huawei's industrial espionage was successful, which is why the company was able to cut its research budget significantly, which gave the company an “unfair advantage”.
Huawei has been on trial in New York since the beginning of last year. So far, the company has been accused of violations of Iran sanctions, money laundering, fraud, conspiracy to obstruct the judiciary and industrial espionage. The company has rejected the allegations.
The US government is taking a tough line against the company because of security concerns when using Huawei's telecommunications equipment. The Chinese company has practically been blocked from the US market for a long time. The government is now pushing other countries to refrain from using Huawei products, especially when expanding the fast new 5G mobile network.
Exemption for doing business with Huawei
Despite the heightening of the indictment, the U.S. government has also renewed an exemption for certain transactions with the Chinese smartphone provider and network supplier. The postponement of 45 days until April 1 should give affected customers more time to switch their businesses to products from other manufacturers, the Ministry of Commerce said on Thursday. The United States placed Huawei on a list of companies last May whose business relationships with US partners are subject to strict controls. The exemption to continue certain businesses has been extended several times since then.
The US government is also concerned with avoiding possible failures in smaller American mobile phone providers in rural areas who have equipped their networks with Huawei transmission technology. For users of Huawei smartphones, the step means, among other things, that Google can continue to supply the phones running with its Android operating system in full for the time being with updates.