US hits Huawei with new charges of racketeering, doing business in North Korea


The United States added to its series of charges against China’s Huawei Technologies on Thursday, accusing the Chinese telecoms giant of stealing intellectual property from six US companies and covering up its involvement in projects in North Korea.

Racketeering, obstruction of justice and money laundering have been added to the criminal case, unsealed in January last year, accusing Huawei of financial fraud.

Federal prosecutors in Brooklyn said the new charges related to a decades-long effort by Huawei and four of its subsidiaries, both in the US and in China ” as well as Huawei’s chief financial officer, Meng Wanzhou, who is facing extradition proceedings in Canada ” to engage in racketeering activities to grow its brand into one of the most powerful telecommunications equipment and consumer electronics companies in the world.

Those efforts were successful and resulted in the company obtaining nonpublic intellectual property about robotics, cellular antenna technology and internet router source code, the prosecutors said.

The new indictment also accused Huawei of involvement in a number of projects in North Korea since at least 2008 and of covering up its actions.

Meng, the daughter of the firm’s founder, Ren Zhengfei, was charged with making false representation to a bank that led to a decision by the financial institution to continue its business relationship with Huawei, the court document said.

Meng faces possible extradition to the US, and her case is being handled by the British Columbia Supreme Court in Vancouver, where she resides.

A Huawei spokesman said the company was reviewing the new charges but did not comment further.

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This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP’s Facebook and Twitter pages. Copyright © 2020 South China Morning Post Publishers Ltd. All rights reserved.

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2020-02-14 01:41:00

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