Feds Pursuing Criminal Probe of Huawei for Trade Secret Theft

A Seattle jury found Huawei liable in a civil lawsuit brought by T Mobile for theft of robotic tech. Now the DOJ is ready to file criminal charges

In addition to this, The Wall Street Journal announced bipartisan lawyers have introduced bills that could prevent US chip companies selling their products to Huawei Technologies, ZTE Corp and other Chinese telecom enterprises known to violate USA export laws and sanctions, according to Reuters.Among Chinese companies operating overseas, ZTE Corp and Huawei have been viewed with most suspicion by USA authorities, and some of ZTE's actions became central to discussions of the ongoing U.S.

Federal prosecutors are following up on civil lawsuits against Huawei by launching a wider investigation into the company and its trade practices, the Wall Street Journal reported Thursday.

"The probe is at an advanced stage and could lead to an indictment soon", the sources said.

This time, however, the US Department of Justice' investigation isn't focusing on some grand national security threat but on the Huawei's repeated theft of trade secrets from US companies.

A Huawei spokesman and a spokeswoman for the U.S. attorney in the western district of Washington declined to comment.

The U.S report warned that China could use network equipment for cyber-espionage, which in part prompted calls similar to those made this week from the provincial NDP: To have SaskTel release details of its Huawei contracts and investigate "potential problems the relationship could cause".

The investigation arose out of civil lawsuits against Huawei, the Journal said, including one in Seattle where Huawei was found liable for misappropriating robotic technology from T-Mobile (TMUS.O).

The tensions come amid a backdrop of President Donald Trump's efforts to get more manufacturing on USA soil and slap hefty tariffs on Chinese goods for what he claims are unfair trade practices by Beijing.

Handelsblatt quoted Huawei founder Ren Zhengfei as saying his company had never received a request from a government to transmit information in violation of any regulations.

The bills specifically cite ZTE and Huawei, both of which are viewed with suspicion in the United States because of fears their technology could be used to spy on Americans. She is awaiting extradition hearings to the US while living under restrictions in her million-dollar Vancouver home.

The proposed law and investigation are two of several challenges that Huawei, the world's biggest telecommunications equipment maker, faces in the USA market. Huawei employees reportedly photographed the robot and attempted to steal some of its parts.

On Wednesday, US lawmakers introduced bills that would ban the sale of US chips or other components to Huawei, ZTE or other Chinese telecommunications companies that violate US sanctions or export control laws. US lawmakers have also banded together to ban chip sales to Huawei, ZTE, and other mainland companies to over sanctions violations.

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