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

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 logo
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."

As you can tell from the number and magnitude of the charges, Huawei and its senior executives repeatedly refused to respect U.S. law and standard international business practices. Huawei also intentionally and systematically sought to steal valuable intellectual property from an American company so it could circumvent hard-earned time consuming research and gain an unfair market advantage. [...]

As Americans, we should all be concerned about the potential for any company beholden to a foreign government - especially one that doesn't share our values -- to burrow into the American telecommunications market. Today's charges serve as a warning that the FBI does not - and will not -- tolerate businesses that violate our laws, obstruct our justice, and jeopardize our national security.

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.

Popular Stories

New Things Your iPhone Can Do in iOS 18

20 New Things Your iPhone Can Do in iOS 18.2

Monday December 16, 2024 8:55 am PST by
Apple released iOS 18.2 in the second week of December, bringing the second round of Apple Intelligence features to iPhone 15 Pro and iPhone 16 models. This update brings several major advancements to Apple's AI integration, including completely new image generation tools and a range of Visual Intelligence-based enhancements. Apple has added a handful of new non-AI related feature controls as...
iphone 16 apple intelligence

Apple Drops Plans for iPhone Hardware Subscription Service

Wednesday December 18, 2024 11:39 am PST by
Apple is no longer planning to launch a hardware subscription service that would let customers "subscribe" to get a new iPhone each year, reports Bloomberg's Mark Gurman. Gurman first shared rumors about Apple's work on a hardware subscription service back in 2022, and at the time, he said that Apple wanted to develop a simple system that would allow customers to pay a monthly fee to gain...
iPhone 17 Pro Dual Tone Feature 1

iPhone 17 Pro Rumored to Stick With 'Triangular' Camera Design

Wednesday December 18, 2024 2:36 am PST by
Contrary to recent reports, the iPhone 17 Pro will not feature a horizontal camera layout, according to the leaker known as "Instant Digital." In a new post on Weibo, the leaker said that a source has confirmed that while the appearance of the back of the iPhone 17 Pro has indeed changed, the layout of the three cameras is "still triangular," rather than the "horizontal bar spread on the...
elevation lab airtag battery

Your AirTag's Battery Will Last for Up to 10 Years With Elevation Lab's New TimeCapsule Enclosure

Wednesday December 18, 2024 10:05 am PST by
Elevation Lab today announced the launch of TimeCapsule, an innovative and simple solution for increasing the battery life of Apple's AirTag. Priced at $20, TimeCapsule is an AirTag enclosure that houses two AA batteries that offer 14x more battery capacity than the CR2032 battery that the AirTag runs on. It works by attaching the AirTag's upper housing to the built-in custom contact in the...
apple tv 4k yellow bg feature

New Apple TV Rumored to Launch Next Year With These Features

Tuesday December 17, 2024 9:02 am PST by
The current Apple TV 4K was released more than two years ago, so the streaming device is becoming due for a hardware upgrade soon. Fortunately, it was recently rumored that a new Apple TV will launch at some point next year. Below, we recap rumors about the next-generation Apple TV. Bloomberg's Mark Gurman last week reported that Apple has been working on its own combined Wi-Fi and...
blackmagic vision pro

Blackmagic Debuts $30K 3D Camera for Capturing Video for Vision Pro

Monday December 16, 2024 4:17 pm PST by
Blackmagic today announced that its URSA Cine Immersive camera is now available for pre-order, with deliveries set to start late in the first quarter of 2025. Blackmagic says that this is the world's first commercial camera system designed to capture 3D content for the Vision Pro. The URSA Cine Immersive camera was first introduced in June, but it has not been available for purchase until...
mac pro creativity

Apple Launched the Controversial 'Trashcan' Mac Pro 11 Years Ago Today

Thursday December 19, 2024 7:00 pm PST by
Apple launched the controversial "trashcan" Mac Pro eleven years ago today, introducing one of its most criticized designs that persisted through a period of widespread discontentment with the Mac lineup. The redesign took the Mac Pro in an entirely new direction, spearheaded by a polished aluminum cylindrical design that became unofficially dubbed the "trashcan" in the Mac community. All of ...
iPhone 17 Slim Feature

'iPhone 17 Air' With 'Major' Design Changes and 19-Inch MacBook Detailed in New Report

Sunday December 15, 2024 9:47 am PST by
Apple is planning a series of "major design" and "format changes" for iPhones over the next few years, according to The Wall Street Journal's Aaron Tilley and Yang Jie. The paywalled report published today corroborated the widely-rumored "iPhone 17 Air" with an "ultrathin" design that is thinner than current iPhone models. The report did not mention a specific measurement, but previous...

Top Rated Comments

lunarworks Avatar
77 months ago
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.
Score: 29 Votes (Like | Disagree)
341328 Avatar
77 months ago
Doing business with China is a long term bad move.
Score: 28 Votes (Like | Disagree)
macguru212 Avatar
77 months ago
DOJ: It's our way or the Huawei!
Score: 23 Votes (Like | Disagree)
brendu Avatar
77 months ago
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.
Score: 18 Votes (Like | Disagree)
macduke Avatar
77 months ago
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."
China wouldn’t know a free and fair global market if it hit them in the face—and it’s about to!
Score: 15 Votes (Like | Disagree)
sidewinder3000 Avatar
77 months ago
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.
Score: 13 Votes (Like | Disagree)