Image copyright Reuters Image caption The US has laid 23 charges against Chinese telecoms firm Huawei

The US Justice Department has filed a host of criminal charges against Chinese telecoms giant Huawei and its chief financial officer, Meng Wanzhou.

The charges against the world's second largest smartphone maker include bank fraud, obstruction of justice and theft of technology.

The case could ratchet up tensions between China and the US, and impact the firm's global expansion efforts.

Both Ms Meng and Huawei deny the allegations.

Ms Meng was arrested in Canada last month at the request of the US for allegedly evading sanctions on Iran.

"For years, Chinese firms have broken our export laws and undermined sanctions, often using US financial systems to facilitate their illegal activities. This will end," said US Commerce Secretary Wilbur Ross.

In a statement, Huawei rejected the charges, saying it didn't commit "any of the asserted violations" and that it "is not aware of any wrongdoing by Ms Meng".

It said the allegations were already the subject of a settled civil suit, in which a jury found "neither damages nor willful and malicious conduct on the trade secret claim".

What are the charges?

The indictment alleges Huawei misled the US and a global bank about its relationship with two subsidiaries, Huawei Device USA and Skycom Tech, to conduct business with Iran.

US President Donald Trump's administration has reinstated all sanctions on Iran removed under a 2015 nuclear deal and recently imposed even stricter measures, hitting oil exports, shipping and banks.

A second case alleges Huawei stole technology from T Mobile used to test smartphone durability, as well as obstructing justice and committing wire fraud.

The T-Mobile tech, known as Tappy, mimicked human fingers to test phones.

In all, the US has laid 23 charges against the company.

"These charges lay bare Huawei's alleged blatant disregard for the laws of our country and standard global business practices," said FBI Director Christopher Wray.

Mr Wray said companies like Huawei "pose a dual threat to both our economic and national security".

What's the context?

Huawei is one of the largest telecommunications equipment and services providers in the world, recently passing Apple to become the second biggest smartphone maker by volume after Samsung.

But the US and other Western nations have been concerned that the Chinese government could use Huawei's technology to expand its spying ability, although the firm insists there is no government control.

The arrest of Ms Meng, the daughter of Huawei's founder, infuriated China.

Image copyright Reuters Image caption Meng Wanzhou is the daughter of the company's founder

She was arrested on 1 December in Canada's western city of Vancouver at the request of the US.

She was later granted a C$10m (£5.7m; $7.6m) bail by a local court. But she is under surveillance 24 hours a day and must wear an electronic ankle tag.

Chinese 'national champion' faces US justice

Analysis by Karishma Vaswani, Asia business correspondent

Huawei is what the Chinese call a national champion. A private firm, tasked with China's ambitions to go into the world and lead the way.

But now the full force of the US justice system is being hurled at the firm.

The allegations by the US Department of Justice are the most serious Huawei has ever seen, and go to the heart of the trade war between China and the US.

Huawei has consistently denied the allegations, and the firm's boss says it is being used as a pawn in power games between the US and China.

While the US says the charges against Huawei aren't about trade war, it is unlikely the Chinese will see it the same way.

The charges come as the US and China prepare to hold high-level trade talks in Washington this week.

US commerce secretary Wilbur Ross stated that the Huawei charges were "wholly separate" from ongoing trade negotiations with China.

However, the indictment focuses on the alleged theft of US technology, which has been a major sticking point in trade negotiations.

President Trump's administration has imposed tariffs on $250bn (£190bn) worth of Chinese goods, prompting Beijing to respond with its own tariffs.

Both countries agreed last month to suspend new tariffs for 90 days to allow talks.</s>According to the DOJ announcement released today three companies: Huawei Technologies Co. Ltd., Huawei Device USA Inc. and Skycom Tech Co. Ltd. are charged with bank fraud and conspiracy to commit bank fraud, wire fraud and conspiracy to commit wire fraud, violations of the International Emergency Economic Powers Act (IEEPA) and conspiracy to violate IEEPA, and conspiracy to commit money laundering. Huawei and Huawei USA are charged with conspiracy to obstruct justice related to the grand jury investigation in the Eastern District of New York.

Additionally Ms. Meng Wanzhou is charged with bank fraud, wire fraud, and conspiracies to commit bank and wire fraud. Acting U.S. Attorney General Matthew G. Whitaker, Secretary Kirstjen Nielsen of the U.S. Department of Homeland Security, Secretary Wilbur Ross of the U.S. Department of Commerce, U.S. Attorney Richard P. Donoghue for the Eastern District of New York, FBI Director Christopher A. Wray, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and Assistant Attorney General John C. Demers of the National Security Division, announced the charges:</s>U.S. prosecutors filed criminal charges against Huawei Technologies, China’s largest technology company, alleging it stole trade secrets from American rival T-Mobile USA and committed bank fraud by violating sanctions against doing business with Iran.

Huawei has been the target of a broad U.S. crackdown, including allegations it sold telecommunications equipment that could be used by China’s Communist Party for spying. The charges filed Monday also mark an escalation of tensions between the world’s two largest economies, which are mired in a trade war that has roiled markets.

In a 13-count indictment in Brooklyn, New York, the government alleged Huawei, two affiliated companies and Chief Financial Officer Wanzhou Meng of bank and wire fraud as well as conspiracy in connection with business in Iran.

A 10-count indictment in Washington state accused the company of stealing trade secrets from T-Mobile and offering bonuses to employees who succeeded in getting technology from rivals.

That charge builds on a 2014 civil suit by T-Mobile in which it claimed Huawei sought to replicate a cellphone-testing robot, nicknamed Tappy, that after its employees illicitly obtained parts, software and specifications from T-Mobile’s Bellevue lab. A jury later awarded T-Mobile $4.8 million for the misappropriated trade secrets.

The twin criminal cases “expose Huawei’s brazen and persistent actions to exploit American companies and financial institutions, and to threaten the free and fair global marketplace,” Christopher Wray, director of the Federal Bureau of Investigation, said at a press conference in Washington announcing the charges.

Huawei didn’t respond immediately to requests for comment on the allegations.

Prosecutors in Manhattan said that Huawei concealed its relationship with Skycom Tech Co. Ltd, a company in Iran, in violation of U.S. laws. Meng “personally made a presentation in August 2013 to an executive of one of Huawei’s major banking partners in which she repeatedly lied about the relationship,” prosecutors said in a statement announcing the charges. Skycom was also charged.

Charges include bank and wire fraud, conspiracy and violations of the International Emergency Economic Powers Act. In addition, Huawei and Huawei USA are accused of conspiring to obstruct justice.

Prosecutors also alleged that Huawei began a “concerted effort” in 2012 to steal information from T-Mobile and even offered bonuses to employees who could get their hands on the technologies of rivals.

When T-Mobile’s civil suit was filed in 2014, a U.S. Huawei spokesman blamed the episode on “two Huawei employees acting inappropriately in their zeal to better understand the customer’s quality testing requirements,” and said they had been fired.

However, the criminal indictment unsealed in Seattle describes a constant stream of demands from Huawei’s headquarters in China that its employees in Bellevue obtain information that T-Mobile declined to provide.

Huawei engineers secretly took photos of T-Mobile’s robot, took measurements of parts of the robot and, in one instance, stole a piece of the robot, prosecutors said.

Meng, 46, the daughter of the company’s founder, was arrested in Canada Dec. 1 on allegations that she committed fraud to sidestep sanctions against Iran. Meng is free in Vancouver, staying at her $4.2 million mansion with GPS monitoring, after posting bail of C$10 million ($7.5 million) as she fights extradition to the U.S. to face criminal charges.

The U.S. is asking that the Canadian authorities extradite Meng. Canada’s justice minister then has up to 30 days to assess the request. If he issues an “authority to proceed,” that means Canada is officially moving to extradition hearings. If so, they would likely be scheduled months later.

Tech giant Huawei reportedly target of U.S. criminal probe for trade secrets theft</s>The U.S. Justice Department on Monday announced two indictments against the Chinese telecommunications firm Huawei, which it said is accused of theft of trade secrets, obstructing justice, and lying to banks over its alleged non-compliance with U.S. sanctions against Iran.



Acting Attorney General Matthew Whitaker said a grand jury in Seattle had returned an indictment alleging 10 federal crimes on the part of two Huawei affiliates related to an alleged “concerted effort to steal information about a robot that T-Mobile used to test mobile phones.”

Whitaker said Huawei engineers had violated confidentiality agreements by “secretly taking photos of the robot, measuring it, and even stealing a piece of it.” The robot, nicknamed “Tappy,” is used to perform durability tests on phones sold by T-Mobile, according to an earlier report by the Wall Street Journal.

A grand jury in New York separately returned an indictment for 13 additional crimes allegedly committed by Huawei, a U.S. subsidiary (Huawei USA), and an Iranian affiliate (Skycom). Additionally, Huawei’s chief financial officer, Meng Wanzhou, who was arrested in Canada in December at the U.S. government’s request, was charged in what Whitaker described as criminal activity spanning more than a decade, going “all the way to the top of the company.”

Specifically, Huawei and Skycom are charged with bank fraud and conspiracy to commit bank fraud, wire fraud and conspiracy to commit wire fraud, violations of the International Emergency Economic Powers Act (IEEPA) and conspiracy to violate IEEPA, and conspiracy to commit money laundering, according to the DOJ. Further, as part of an investigation in the Eastern District of New York, Huawei and its U.S. subsidiary are charged with conspiracy to obstruct justice.

Whitaker said the U.S. is currently seeking an extradition order in Canada for Meng, who has said she is innocent of charges, which include bank fraud, wire fraud, and conspiracy to commit both.

“As early as 2007, Huawei employees allegedly began to misrepresent the company’s relationship with its Iranian affiliate, which is called Skycom,” said Whitaker. “Huawei employees reportedly told banking partners that Huawei had sold its ownership interest in SkyCom. But these claims were false. In reality, Huawei had sold Skycom to itself.”

The reason for Huawei’s deception, Whitaker said, was to conceal the fact that the company was not in compliance with American sanctions. “These alleged false claims led banks to do business with the company, and therefore to unknowingly violate our laws,” he said, adding the one bank had “facilitated more than $100 million worth of Skycom transactions through the United States in four years.”

Huawei is also accused of lying to the U.S. government and obstructing justice, he said, including by concealing and destroying evidence and moving potential witnesses back to China and therefore out of the reach of U.S. prosecutors.

“As charged in the indictment, Huawei and its Chief Financial Officer broke U.S. law and have engaged in a fraudulent financial scheme that is detrimental to the security of the United States,” said Homeland Security Kirstjen Secretary Nielsen. “They willfully conducted millions of dollars in transactions that were in direct violation of the Iranian Transactions and Sanctions Regulations, and such behavior will not be tolerated.”

Huawei did not immediately respond to Gizmodo’s request for comment on the charges and related allegations.</s>The chance you'll see Huawei phones and routers in the US grew bleaker today, as Chinese telecom firm has officially been criminally charged by the US government.

Huawei, now the No. 2 smartphone manufacturer in the world ahead of Apple, faces 23 criminal charges spanning two separate indictments by the US Department of Justice. It breaks down to 13 counts of financial fraud, Iran sanctions violations, and money laundering, and 10 counts of theft and charges stemming from that action.

"Criminal activity goes back at least 10 years and goes all the way to the top of the company," said US Attorney General Matthew Whitaker in a press conferencing unsealing the indictments.

Doing business with Iran and covering it up

The first set of criminal charges surround a Huawei CFO Wanzhou Meng and a little known affiliate named Skycom. Meng, who happens to be the Huawei co-founder's daughter, was arrested in Canada in early December and faces extradition to the US.

Skycom is said to be a Huawei affiliate that was doing business in Iran, though the US government accuses Huawei of covering up this fact with lying and committing bank and wire fraud to cover its tracks. It was all in an effort to undermine US sanctions, according to the Department of Justice.

You may recall that Chinese telecom firm and Huawei rival ZTE illegally did business with Iran and covered it up. It culminated in a seven-year ban on doing business with US companies, essentially giving a 'death sentence' for the Android phone maker. President Trump eventually stepped in.

The second indictment against Huawei surrounds the theft of trade secrets in 2012. T-Mobile made a phone-testing robot named 'Tappy'

Huawei allegedly wanted to build their own robot for testing phones, so its engineers secretly took photos measurements of 'Tappy.' It's also accused of stealing a piece of the robot so that the Huawei engineers in China could try to replicate it, according to the Department of Justice.

When T-Mobile threatened to sue, Huawei claimed that this theft was by 'route actors' within the company. However, the US government says it has emails that point to a conspiracy to steal secrets from T-Mobile and that it was indeed a company-wide effort.</s>The US Department of Justice on Monday charged Huawei with theft of trade secrets, wire fraud and obstruction of justice.

A 10-count indictment alleges that China's Huawei stole trade secrets from US carrier T-Mobile beginning in 2012. Huawei also allegedly offered bonuses to employees who stole confidential information from companies. In addition, a 13-count indictment charged four defendants, including Huawei and Chief Financial Officer Meng Wanzhou, with financial fraud. The indicted defendants also include affiliates Huawei USA and Skycom.

"The charges unsealed today clearly allege that Huawei intentionally conspired to steal the intellectual property of an American company in an attempt to undermine the free and fair global marketplace," said FBI Director Christopher Wray in a statement. "To the detriment of American ingenuity, Huawei continually disregarded the laws of the United States in the hopes of gaining an unfair economic advantage."

The charges come amid heightened scrutiny for Huawei, the world's largest supplier of telecom equipment and the No. 2 smartphone maker behind Samsung. The US has already banned Huawei from selling networking equipment here, but a number of other countries have either already ceased working with the company, or are considering a ban. The Chinese government and Huawei have said the moves could have ramifications since the company contributes to industry-standard wireless technologies like 5G.

Both the US and China are jockeying for leadership in the next-generation of cellular technology, which promises higher speeds and the ability to handle more connected devices. US officials have offered warnings about Huawei and its ties to China.

"There is ample evidence to suggest that no major Chinese company is independent of the Chinese government and Communist Party -- and Huawei, which China's government and military tout as a 'national champion,' is no exception," said Sen. Mark Warner, a Virginia Democrat who's vice chairman of the Senate Select Committee on Intelligence.

"Huawei is disappointed to learn of the charges brought against the company today," the company said in an emailed statement.

"After Meng's arrest, the company sought an opportunity to discuss the Eastern District of New York investigation with the Justice Department, but the request was rejected without explanation," Huawei continued. "The allegations in the Western District of Washington trade secret indictment were already the subject of a civil suit that was settled by the parties after a Seattle jury found neither damages nor willful and malicious conduct on the trade secret claim."

According the first set of indictments, Huawei began stealing information about a phone-testing robot from T-Mobile called Tappy. Huawei engineers allegedly violated confidentiality and nondisclosure agreements by taking pictures of Tappy, taking measurements of parts of the robot and stealing a piece of it. When T-Mobile found out and threatened to sue, Huawei falsely said the theft was done by rogue actors within the company, according to the indictment.

T-Mobile sued anyway, and in 2017 won its case against Huawei, with a jury awarding it $4.8 million.

Despite Huawei's insistence that the action was a one-off affair, the Justice Department says emails obtained during the investigation found that the theft of secrets from T-Mobile was a companywide effort.

Huawei could face a fine of up to either $5 million or three times the value of the stolen trade secret, for conspiracy and attempt to steal trade secrets. The company could also face a fine of up to $500,000 for wire fraud and obstruction of justice.

In the second set of indictments, Meng was charged with bank fraud, wire fraud and conspiracies to commit bank and wire fraud. Huawei and Huawei USA are charged with conspiracy to obstruct justice. Huawei and Skycom are charged with bank fraud and conspiracy to commit bank fraud, wire fraud and conspiracy to commit wire fraud, violating the International Emergency Economic Powers Act and conspiracy to violate IEEPA, and conspiracy to commit money laundering.

The charges are related to the company's alleged efforts to evade US sanctions and do business with Iran. Last month, Meng was detained in Canada at the behest of the Justice Department over those claims. While in a Vancouver courthouse to discuss her bail, a lawyer with Canada's Justice Department alleged she defrauded US banks into making transactions that violated those sanctions, according to Bloomberg.

Notably, Meng isn't just the CFO of Huawei. She's the daughter of the founder and president, Zhengfei Ren. And her arrest doesn't just have ripple effects across the tech industry; it threatens to blow up an already precarious relationship between the US and China over trade talks.

Beyond trade, others see Huawei as a national security issue.

"It has been clear for some time that Huawei poses a threat to our national security, and I applaud the Trump Administration for taking steps to finally hold the company accountable," Warner said.

Huawei has consistently denied any wrongdoing by Meng. At the World Economic Forum at Davos, Huawei Chairman Liang Hua called for a quick resolution of the case and the release of Meng, according to Reuters.

Meng's lawyer, Reid Weingarten, told Reuters on Tuesday that she was a victim of "complex" China-US relations.

"Our client, Sabrina Meng, should not be a pawn or a hostage in this relationship." he said, using one of her Western names. "Ms. Meng is an ethical and honorable businesswoman who has never spent a second of her life plotting to violate any US law, including the Iranian sanctions."

Huawei also told Reuters that it had sought to discuss the charges with US authorities, "but the request was rejected without explanation."

Over the past few months, Huawei has endured a wave of negative sentiment. UK carrier BT said it'd pull Huawei equipment out of its 4G network and ban it from any future 5G deployments. Japan reportedly banned government purchases from Huawei. Also last month, Andrus Ansip, the EU's technology chief, warned that Huawei and other Chinese companies pose a risk to the bloc's industry and security, according to Reuters.

All of the negativity could have a trickle-down effect on the company.

"[The case] puts every aspect of Huawei's business in jeopardy in the US and EU, including consumer sales," said Maribel Lopez, an analyst at Lopez Research. "Instead of being known for innovation, the company is positioned as criminal."

First published Jan. 28 at 2:09 p.m. PT

Update Jan. 29 at 2:59 a.m. PT: Added Reuters comments from Meng's lawyer and Huawei.

Update at 5:08 a.m. PT: Added comment from Huawei.

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Taking It to Extremes: Mix insane situations -- erupting volcanoes, nuclear meltdowns, 30-foot waves -- with everyday tech. Here's what happens.</s>WASHINGTON/HONG KONG (Reuters) - The United States on Monday announced criminal charges against China’s Huawei Technologies Co Ltd, escalating a fight with the world’s biggest telecommunications equipment maker which denies wrongdoing, and coming days before trade talks with Beijing.

The Justice Department charged Huawei and its chief financial officer with conspiring to violate U.S. sanctions on Iran by doing business through a subsidiary it tried to hide and that was reported on by Reuters in 2012 reut.rs/2sRL7Ve and 2013 reut.rs/2sUq8RT.

In a separate case, the Justice Department said Huawei stole robotic technology from T-Mobile US Inc. Huawei has said the companies settled their dispute in 2017.

CFO Meng Wanzhou, the daughter of Huawei’s founder, was arrested in Vancouver on Dec. 1, in a move which was followed by China arresting two Canadians on national security grounds. She has denied wrongdoing and is scheduled to appear in court on Tuesday to discuss changes to her bail terms.

Late on Monday, public broadcaster CBC said the U.S. has formally requested her extradition, citing Canada’s Justice Department.

Huawei said it was “disappointed” to learn of the charges. It said it had sought to discuss them with U.S. authorities “but the request was rejected without explanation”.

“The Company denies that it or its subsidiary or affiliate have committed any of the asserted violations..., is not aware of any wrongdoing by Ms. Meng, and believes the U.S. courts will ultimately reach the same conclusion.”

China’s foreign ministry expressed “grave concern” and urged the United States drop the arrest warrant and end “unreasonable suppression” of Chinese companies.

The development is likely to upset talks between Beijing and Washington this week as part of negotiations intended to walk back trade tensions between the globe’s two largest economies.

U.S. President Donald Trump said in December he could intervene in Meng’s case if it would serve national security interests or help close a trade deal with China.

U.S. Commerce Secretary Wilbur Ross said the charges are “wholly separate” from the trade negotiations.

Canada’s Justice Minister will have 30 days from receipt of the extradition request to decide whether to grant authority to proceed. If granted, Meng’s case would be sent to the British Columbia Supreme Court for an extradition hearing, which could take weeks or months.

Huawei makes equipment including base stations, switches and routers, as well as consumer products such as smartphones, and derives nearly half of its total revenue outside China.

Its global reach has come under attack from the United States, which is trying to prevent U.S. companies from buying Huawei equipment and is pressing allies to do the same. U.S. security experts are concerned the gear could be used by China’s government for espionage - a concern Huawei calls unfounded.

Australia and New Zealand followed the U.S. lead in restricting market access over the past year. On Tuesday, TPG Telecom Ltd canceled the Huawei-based mobile phone network it was building, in the first commercial casualty of Australia’s move.

Huawei said it is the world’s leading provider of 5G technology, winning 30 contracts globally - more than any of its competitors - including 18 in Europe.

It is unclear how the U.S. charges would impact its business. Last year, Chinese peer ZTE Corp was prevented from buying essential components from U.S. firms after pleading guilty to similar charges, crippling its operations.

ZTE resumed normal business after paying up to $1.4 billion in fines and replacing its entire board, on top of a near $900 million penalty paid in 2017.

U.S. Acting Attorney General Matthew Whitaker said the alleged criminal activity at Huawei “goes back at least 10 years and goes all the way to the top of the company.” The charges against Meng and Huawei cite the Reuters stories that said Huawei’s Skycom unit sought to sell goods to Iran.

The indictment noted that denials from Huawei in the stories were relied upon by financial institutions “in determining whether to continue their banking relationships with Huawei and its subsidiaries.”

The indictment featured a meeting in August 2013 between Meng and an executive from an unidentified bank. Sources told Reuters the bank is HSBC Holdings PLC, which paid $1.92 billion in 2012 for violating U.S. anti-money-laundering and sanctions laws.

During the meeting, Meng misrepresented Huawei operations in Iran and ownership and control of Skycom, the indictment showed.

The Justice Department has confirmed that HSBC is not under investigation in this case, HSBC said in a statement last month.

Also according to the indictment, in July 2007, the FBI interviewed Huawei founder Ren Zhengfei and U.S. authorities said he falsely told them Huawei did not violate U.S. export laws.

The indictment concerning trade secret theft alleged that Huawei had a formal policy instituting a bonus program to reward employees who stole confidential information from competitors.

FBI Director Christopher Wray said the Huawei cases, filed in New York and Washington state, “expose Huawei’s brazen and persistent actions to exploit American companies and financial institutions, and to threaten the free and fair global marketplace.”</s>Washington/Beijing, Jan 29 (IANS) The US Justice Department has filed a host of criminal charges, including bank fraud, obstruction of justice and theft of technology against Chinese tech giant Huawei and its detained Chief Financial Officer Meng Wanzhou, a move decried by Beijing as “unjustified repression”.

A 13-count indictment filed on Monday in New York City against Huawei, two affiliates and Meng detailed allegations of bank and wire fraud. The company was also charged with violating Washington’s sanctions on Iran and conspiring to obstruct justice related to the investigation, the US media reported.

Both Huawei and Meng deny the allegations. The case could ratchet up tensions between Washington and Beijing and impact the firm’s global expansion efforts.

“We are announcing that we are bringing criminal charges against Huawei and its associates for nearly two dozen alleged crimes,” US acting Attorney General Matthew Whitaker said in a statement.

“The criminal activity in this indictment goes back 10 years and goes all the way to the top of the company. China must hold its citizens and Chinese companies accountable for complying with the law,” he was cited as saying by the New York Times.

The Chinese Foreign Affairs Ministry said it was very “concerned” about the criminal complaint filed by the US Justice Department against Huawei and Meng who was arrested in Canada on December 1 at the request of the US for allegedly evading sanctions on Iran.

Meng has been since released on bail and her travel is confined to Vancouver and surrounding areas. She could face up to 30 years if found guilty on all counts.

On Monday evening, the Canadian Justice Department said it had received a formal request for Meng’s extradition to the US to stand trial. The request came even as Beijing pressured Ottawa to release her.

In a statement, Huawei rejected the charges, saying it didn’t commit “any of the asserted violations” and that it “was not aware of any wrongdoing by Meng”.

“The US government and China have an extremely complex, multifaceted relationship. Our client, Sabrina Meng, should not be a pawn or a hostage in this relationship,” said Huawei attorney Reid Weingarten.

Chinese Foreign Ministry spokesperson Geng Shuang said: “For some time, the US has used its government power to discredit and crack down on specific Chinese companies in an attempt to stifle their legitimate operations.”

“We strongly urge the US to stop the unreasonable suppression of Chinese companies, including Huawei, and treat them objectively and fairly,” he was quoted as saying by Xinhua news agency.

The indictment alleged that Huawei misled the US and a global bank about its relationship with two subsidiaries, Huawei Device USA and Skycom Tech, to conduct business with Iran.

US President Donald Trump’s administration had reinstated all sanctions on Iran removed under a 2015 nuclear deal and recently imposed even stricter measures, hitting oil exports, shipping and banks.

A second case alleged that Huawei stole technology from T Mobile USA used to test smartphone durability, as well as obstructing justice and committing wire fraud.

The T-Mobile tech, known as Tappy, mimicked human fingers to test phones. In all, the US filed 23 charges against the company.

“These charges lay bare Huawei’s alleged blatant disregard for the laws of our country and standard global business practices,” said Federal Bureau of Investigation Director Christopher Wray.

The charges came as the two countries’ leaders seek to end their months-long trade dispute, with China’s lead trade negotiator, Liu He, scheduled to meet US officials in Washington in coming days.</s>The Trump administration on Monday brought criminal charges against Huawei for alleged theft of trade secrets, wire fraud and breach of sanctions, among other violations.

In 23 indictments, filed in federal court in Brooklyn and Seattle, the U.S. claims that Huawei sought to steal confidential information from T-Mobile from 2012 to 2014, and that executives at the top brass of the company were aware of the effort. The government also alleges that the Chinese firm misrepresented its ownership of an Iranian affiliate called Skycom. The U.S. has sanctions against doing business in Iran.

The list of defendants includes Huawei's Chief Financial Officer Wanzhou Meng, who was arrested in Canada last month and is facing extradition to the U.S. A formal extradition request is expected to be filed by Tuesday, according to acting Attorney General Matthew Whitaker.

The decision marks a dramatic escalation in the global efforts to curb the operations of the telecommunications firm that U.S. officials say effectively operates as a conduit for Chinese espionage.

"We need more law enforcement cooperation with China. China should be concerned about criminal activity by Chinese companies and China should take action," Whitaker told reporters.

The charges also come as officials from the U.S. and China are prepared to meet in Washington D.C. this week to continue discussions on a trade deal between the two nations. White House press secretary Sarah Sanders on Monday said the charges will not influence the ongoing talks.

In 2012, Huawei allegedly began to steal information on a new robot T-Mobile was building to test phones. Employees at the firm -- which was trying to build its own phone-testing machine -- took covert photos and stole parts of the robot so engineers in China could replicate it, the suit says. Huawei also offered employee bonuses contingent on the level of stolen information, according to emails obtained by the FBI.

“The charges unsealed today clearly allege that Huawei intentionally conspired to steal the intellectual property of an American company in an attempt to undermine the free and fair global marketplace,” Director Christopher Wray said. “The FBI will not tolerate corrupt businesses that violate the laws that allow American companies and the United States to thrive.”

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In 13 additional indictments filed separately in Brooklyn, the U.S. claims that Huawei engaged in "conspiracy to commit bank fraud" and money laundering, bank fraud and "conspiracy to obstruct justice" by lying about its ownership of Skycom, which the firm said it sold.

Meng, along with other Huawei employees, "continued to lie to Huawei's banking partners" about its relationship with Skycom, the suit says, also opening up the financial institutions to possible civil or criminal penalties for processing transactions related to Iran through the U.S. When Huawei learned of the federal government's investigation into Skycom, the firm allegedly tried to move witnesses outside of U.S. jurisdiction and destroy evidence of its Iranian operations.

“For years, Chinese firms have broken our export laws and undermined sanctions, often using U.S. financial systems to facilitate their illegal activities,” said Commerce Secretary Wilbur Ross. “This will end."</s>US authorities unveiled Monday a sweeping set of 23 criminal charges against the Chinese telecom giant Huawei Technologies Co in a new escalation of tensions between the United States and China that are slated to resume trade talks this week.

The charges contained in two indictments announced Monday accused Huawei and its chief financial officer and owner’s daughter Meng Wanzhou, who is the custody of Canadian authorities on an extradition request from the US, with bank fraud, violation of US sanctions on Iran, theft of trade secrets and obstruction of justice.

The charges came ahead of negotiators from the two countries meeting here on later in the week to resume talks to resolve trade tensions triggered by President Donald Trump’s tariffs on steel and aluminum at first and subsequently on billions worth of imports from China, which has retaliated in equal measure. Trump is expected to meet Chinese Vice Premier Liu He, who is leading the Chinese delegation, some time during the talks.

“Today we are announcing that we are bringing criminal charges against telecommunications giant Huawei and its associates for nearly two dozen alleged crimes” acting attorney general Matthew G. Whitaker told reporters at a news briefing. “As I told Chinese officials in August, China must hold its citizens and Chinese companies accountable for complying with the law.”

Huawei has said it was disappointed by the charges and its request to the US department of justice to discuss the case against Meng was “rejected without explanation”.

In Beijing, government spokesperson Geng Shuang said US charges were driven by “political motivations” and added that, “We urge them to treat Chinese enterprises in a fair and just way.”

Beijing has imprisoned two Canadians and sentenced a third Canadian held on drug-smuggling charges to death in apparent retaliation to Meng’s arrest in Canada, but Chinese authorities have denied they were linked.

The first indictment containing 13 charges, returned by a New York grand jury, Huawei and other defendants, including Meng, pertain to the company’s businesses and dealings in Iran, and its efforts to circumvent US sanctions. It is alleged to have misled multiple global banks and the United State about its ties to Skycom, an Iranian affiliate that it claimed was a separate company after Huawei sold its stakes in it, in 2007.

When, in fact, the United states has alleged Huawei had sold Skycom to itself, through a company it controlled. “As part of this scheme to defraud, Meng allegedly personally made a presentation in August 2013 to an executive of one of Huawei’s major banking partners in which she repeatedly lied about the relationship between Huawei and Skycom,” the US department of justice said in a statement on the indictment.

The Chinese telecom giant, which relied on global banks to process its US dollar transactions through the US, lied to these institutions which would have otherwise refused to process them given US laws and regulation on companies doing business with Iran, in violation of its sanctions. One bank, the indictment said, cleared more $100 million of Skycom-related transactions through the United States between 2010 and 2014, years of a crippling sanctions regime imposed and enforced by the UN and the United States. The sanctions were lifted in 2015 following an agreement to halt Iran’s nuclear programme. President Trump reimposed the sanctions in 2018, but these are US curbs, with no backing from the UN.

In the second indictment, returned by a grand jury in Seattle, Washington, Huawei Device Co., Ltd. and Huawei Device Co. USA are accused of 10 charges related to theft of trade secrets, wire fraud and obstruction of justice.

The affiliates are accused to trying to steal information on a robot used by T-Mobile, a US company, to test phones, called “Tappy”. Huawei personnel are alleged to have taken pictures of the device and measurements and even tried to steal a piece from it for Huawei engineers to duplicate.

When caught, Huawei blamed the theft on “rogue actors”, the US department of justice said, and sought to deny the company’s role in it. But prosecutors have said it was in fact a part of a company-wide effort and alleged Huawei actually rewards employees for stealing trade secrets.

Huawei has been blocked from selling telecommunications equipment in the United States since a 2012 congressional report raised fears of its products being used to spy on Americans. Many other countries remained suspicious of the company,

India has harboured similar reservations about the company, but allowed it to participate in field trials of 5G equipment last December.
The United States Justice Department, Department of Homeland Security, Department of Commerce and Federal Bureau of Investigation announces 23 criminal charges against China's telecom Huawei and its chief financial officer Wanzhou Meng, which include banking and financial fraud, money laundering, wire fraud, conspiracy to defraud the United States, theft of trade secret technology, provided bonus to workers who stole confidential information from companies around the world, obstruction of justice and sanctions violations.