The U.S. Department of Justice has tightened its charges against the Chinese company Huawei. For years, the world’s largest telecommunications provider has been accused of industrial espionage and theft of intellectual property. The company is therefore also being sued under an organized crime law, the U.S. Department of Justice said on Thursday.
In addition, Huawei is again accused of violating US sanctions against Iran and North Korea. The new lawsuit against the second largest mobile phone manufacturer is also directed against subsidiaries and the daughter of the founder, CFO Meng Wanzhou, who is detained in Canada.
The new allegations are about “Huawei’s decades-long efforts to illegally seize intellectual property,” to expand and conduct Huawei’s business, “the Ministry of Justice said. Huawei’s industrial espionage was successful, which is why the company was able to cut its research budget significantly, which gave the company an “unfair advantage”.
Embargo exception extended
Meanwhile, the U.S. government has extended the deadline for American companies to do business with Huawei by 45 days. The exception to the embargo against the Chinese corporation now applies until April 1, the Ministry of Economy said. Last May, the U.S. government blacklisted Huawei. It is forbidden for US companies to do business with Huawei.
Huawei has been on trial in New York since the beginning of last year. So far, the company has been accused of violations of Iran sanctions, money laundering, fraud, conspiracy to obstruct the judiciary and industrial espionage. The company rejected the allegations.
The US government is taking a tough line against the company because of security concerns when using Huawei’s telecommunications equipment. The Chinese market has practically been closed to the US market for a long time. The government is now urging other countries to refrain from using Huawei products, especially when expanding the fast new 5G mobile network.