Federal prosecutors are reportedly investigating Huawei for alleged theft of trade secrets and the misappropriation of technology from its U.S. partners.
According to a report from the Wall Street Journal, the investigation appears to be nearing completion after several civil lawsuits were filed against the company, and an indictment is expected soon.
One of the U.S. partners alleged to have had technology misappropriated is T-Mobile. In 2017, a jury in Seattle found Huawei liable for stealing robotic technology from T-Mobile’s lab in Bellevue, Washington.
Huawei has rejected that ruling, stating that the company “continues to believe in the merits of its defense to the allegations made by T-Mobile.”
The Trump administration has pressured China to take stronger action against technology theft, warning that failure to do so could lead to additional tariffs.
In November, the U.S. Department of Justice said it would work with the FBI to prevent trade secret theft. The department pledged to take action where such thefts occur, including steps to block exports of products from China that incorporate U.S. technology designs.
Lawmakers continue to scrutinize Huawei. This week, a bipartisan group introduced legislation that would impose strict penalties on the company if it becomes law.
Senator Tom Cotton (R-AR), a co-sponsor of the bill, said:
“Huawei is effectively an intelligence-gathering arm of the Chinese Communist Party whose founder and CEO was an engineer for the People’s Liberation Army. It’s imperative we take decisive action to protect U.S. interests and enforce our laws.
If Chinese telecom companies like Huawei violate our sanctions or export control laws, they should receive nothing less than the death penalty – which this denial order would provide.”
This report followed a rare press conference held by Huawei’s founder, intended to address growing security concerns about the company. While the company sought to move past the controversies of 2018, the outlook for 2019 remained uncertain.
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