News

Economy & Business

Huawei Charged with Racketeering, Defying U.S. Sanctions in Business with Iran, North Korea

Area of Huawei’s Cyber Security Lab at its factory campus in Dongguan, Guangdong Province, China, March 25, 2019. (Tyrone Siu/Reuters)

Chinese telecom giant Huawei and two of its American subsidiaries were charged by the Department of Justice for racketeering and conspiracy to steal trade secrets, according to a federal indictment filed Thursday.

The new charges will be added to charges of fraud and intellectual property theft that were levelled at Huawei last January.

The DOJ detailed the allegations in a lengthy press release, showing how Huawei had engaged in a “decades-long” operation to “misappropriate intellectual property” from six rival U.S. technology firms “in an effort to grow and operate Huawei’s business.” The stolen goods included trade secrets, copyrighted code and manuals to build internet routers, antennas, and robot testers.

Huawei allegedly engages in theft in direct interactions with rival firms by entering confidentiality agreements with the intention of violating them, and by recruiting rival employees to steal company secrets.

“As part of the scheme, Huawei allegedly launched a policy instituting a bonus program to reward employees who obtained confidential information from competitors.  The policy made clear that employees who provided valuable information were to be financially rewarded,” the DOJ said.

The new charges also stemmed from allegations that Huawei was blatantly violating U.S. and international sanctions against countries like Iran and North Korea by conducting business through “local affiliates.”

“Reflecting the inherent sensitivity of conducting business in jurisdictions subject to U.S., E.U. and/or U.N. sanctions, internal HUAWEI documents referred to such jurisdictions with code names,” the suit states. “For example, the code ‘A2’ referred to Iran, and ‘A9’ referred to North Korea.”

The Trump administration has conducted a months-long campaign against Huawei, in response to fears that the firm’s global impact and close relationship to the Communist Party could comprise national security. But last month, the Pentagon blocked attempts by the Commerce Department to tighten regulations on Huawei’s dealings with U.S. firms, due to concerns that limiting the multi-billion-dollar company’s status as a valued customer could damage the U.S. economy.

Most Popular

Elections

Bernie’s Huge Victory

Bernie had a massive night in Nevada, with a diverse nomination-winning-type coalition. According to the entrance poll, he won whites and Hispanics and did well among blacks. He won men and women. He won college graduates and did particularly well with non-college graduates. He won Democrats and independents. ... Read More
Elections

Bernie’s Huge Victory

Bernie had a massive night in Nevada, with a diverse nomination-winning-type coalition. According to the entrance poll, he won whites and Hispanics and did well among blacks. He won men and women. He won college graduates and did particularly well with non-college graduates. He won Democrats and independents. ... Read More

Elon Musk’s Plan to Settle Mars

He who follows Freedom, let him leave his homeland, and risk his life. — Adam Mickiewicz, Polish poet, 1832 Last week my wife Hope and I traveled to Boca Chica, Texas, to meet with Elon Musk. While we talked inside the SpaceX onsite headquarters, a mariachi band played outside, providing entertainment for ... Read More

Elon Musk’s Plan to Settle Mars

He who follows Freedom, let him leave his homeland, and risk his life. — Adam Mickiewicz, Polish poet, 1832 Last week my wife Hope and I traveled to Boca Chica, Texas, to meet with Elon Musk. While we talked inside the SpaceX onsite headquarters, a mariachi band played outside, providing entertainment for ... Read More
U.S.

Women’s Sports Should Be Women’s Sports

Transgender sports policies make a mockery of women’s competition. Just look at the state of Connecticut. At the 2018 state open for women’s track and field, two young men identifying as transgender took first and second place in the 100m race. Their participation not only deprived young women of their ... Read More
U.S.

Women’s Sports Should Be Women’s Sports

Transgender sports policies make a mockery of women’s competition. Just look at the state of Connecticut. At the 2018 state open for women’s track and field, two young men identifying as transgender took first and second place in the 100m race. Their participation not only deprived young women of their ... Read More
Elections

Bernie’s Houses

Mike Bloomberg scored a hit -- a palpable hit -- in the debate this week when he pointed back at Bernie Sanders and said: “What a wonderful country we have, the best-known socialist in the country happens to be a millionaire with three houses.” Many conservatives laughed and cheered and wondered why Bernie ... Read More
Elections

Bernie’s Houses

Mike Bloomberg scored a hit -- a palpable hit -- in the debate this week when he pointed back at Bernie Sanders and said: “What a wonderful country we have, the best-known socialist in the country happens to be a millionaire with three houses.” Many conservatives laughed and cheered and wondered why Bernie ... Read More

Escape from Wuhan

The onset of the crisis in Wuhan startled me like a jump scare in a horror movie. You’ve seen the kind I mean. The audience is led to believe that the monster, psycho killer—or what have you—pursuing the intended victim is still distant. Then whatever it is stands up from behind, leaps out in front, bursts ... Read More

Escape from Wuhan

The onset of the crisis in Wuhan startled me like a jump scare in a horror movie. You’ve seen the kind I mean. The audience is led to believe that the monster, psycho killer—or what have you—pursuing the intended victim is still distant. Then whatever it is stands up from behind, leaps out in front, bursts ... Read More