Monday, 27 May, 2019

US Senators Introduce Bill Targeting US Export to China's Telecom Industry

Huawei under investigation for allegedly stealing trade secrets US 'probes Huawei for trade secret theft'
Ginger Lawrence | 17 January, 2019, 08:32

The proposed law was introduced on Wednesday shortly before the Wall Street Journal reported that U.S. authorities are in the "advanced" stages of a criminal probe that could result in an indictment of Chinese technology giant Huawei, the second-largest global smartphone maker and biggest producer of telecommunications equipment.

It comes as the Trump administration is pressing China to take action on questions of technology theft or face additional trade tariffs.

Jinhua, which has denied any wrongdoing, was put on a list of entities that can not buy goods from U.S. firms.

The bills specifically cite ZTE and Huawei, both of which are viewed with suspicion in the United States because of fears that their switches and other gear could be used to spy on Americans.

Furthermore, according to Representative Mike Gallagher (R-WI), Chinese telecommunications companies represent an increasing threat to the US national security, as well as an "intelligence-gathering arm of the Chinese Communist Party" as stated by Senator Tom Cotton (R-AR).

The Justice Department and Huawei both declined to comment on the WSJ's report.

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Ensuring that penalties for violating USA export control laws or sanctions are not withdrawn until a pattern of compliance and cooperation over the course of a year proves that policies surrounding systematic lawbreaking by Chinese telecommunications firms have been changed.

Huawei's reclusive founder Ren Zhengfei, in a rare media interview Tuesday, forcefully denied accusations that his firm engaged in espionage on behalf of the Chinese government.

T-Mobile alleged in a 2014 lawsuit that Huawei employees stole technology relating to a smartphone-testing robot T-Mobile had in a lab in Bellevue, Washington.

In May 2017, a jury said Huawei should pay T-Mobile $US4.8 million ($6.69 million) in damages.

Huawei has been under increasing pressure in the US, Europe and elsewhere amid growing concerns that Beijing could use the company's equipment for spying, something Huawei executives have denied. T-Mobile security cameras even captured a Huawei employee disassembling part of "Tappy", and placing it into his laptop bag.