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18 January 2019

Huawei facing US federal investigation for trade secrets theft: reports

Huawei is reportedly under criminal investigation by US federal authorities for the theft of trade secrets from US business partners.

The Chinese telecommunications firm is accused of stealing trade secrets from companies including T-Mobile US, the Wall Street Journal  reported.

According to the report, published yesterday, January 17, federal authorities are “at an advanced stage” in the investigation.

The probe originates partly from a civil lawsuit brought by T-Mobile against Huawei in 2014. In May 2017, a jury at the US District Court for the Western District of Washington found Huawei liable for trade secrets theft.

According to the original complaint, Huawei “abused its relationship” as a supplier to T-Mobile in order to gain access to a testing robot, and copied its specifications for the purpose of improving its own technology.

Huawei is facing a global backlash over allegations of corporate espionage and trade secrets theft.

Last month, Huawei chief financial officer Meng Wanzhou was arrested in Canada on the back of US allegations that she had violated trade sanctions against Iran. She remains under house arrest in Vancouver.

At the time, a Huawei spokesperson said that the company was not aware of any wrongdoing by Meng. “Huawei complies with all applicable laws and regulations where it operates, including applicable export control and sanction laws and regulations of the UN, US and EU”, the statement said.

Oxford University terminated its relationship with Huawei earlier this month, suspending new donations and sponsorships from the company.

In a statement sent to WIPR, Oxford said that “the decision has been taken in the light of public concerns raised in recent months surrounding UK partnerships with Huawei”.

“We hope these matters can be resolved shortly and note Huawei’s own willingness to reassure governments about its role and activities”, the statement said.

In October last year, WIPR  reported that the US Department of Justice had charged 10 Chinese nationals with trade secrets theft.

Earlier that month, an operative of the Chinese Ministry of State Security  was charged with economic espionage and stealing from US aviation companies.

WIPR has contacted Huawei for comment.

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More on this story

article
1 November 2018   The US Department of Justice has unsealed an indictment against ten Chinese nationals accused of conspiring to steal proprietary information from American and European companies.
article
11 October 2018   A Chinese Ministry of State Security operative has been charged with economic espionage and stealing trade secrets from US aviation companies, it has been revealed.
article
29 January 2019   The US Department of Justice has filed criminal charges against Chinese telecoms manufacturer Huawei, which is accused of stealing trade secrets from US competitors.