24 Nov 2024
Tuesday 29 January 2019 - 13:39
Story Code : 336580

China says US indictment against Huawei is 'unfair', 'immoral'

Tasnim - A spokesman at China's industry and information technology ministry said Tuesday that the US government indictment against Huawei is "unfair" and "immoral," Reuters reported.

The US Department of Justice filed criminal charges Monday against Meng Wanzhou, the chief financial officer of China tech giant Huawei and the daughter of its founder and president Ren Zhengfei. Acting Attorney General Matthew Whitaker confirmed during a press conference that the Justice Department is seeking the extradition of Meng Wanzhou from Canada.

The Justice Department also announced charges Monday against Huawei for allegedly stealing trade secrets from T-Mobile. The charges stem from a civil trade secrets lawsuit filed by T-Mobile in 2014 over a robot called "Tappy," which was used in testing smartphones.

China's foreign ministry, for its part, expressed its concerns about the charges and then characterized the actions as part of a US plot to suppress the success of Chinese firms.

Alex Capri, visiting senior fellow at NUS Business School, told CNBC he found Beijing's response notable.

"I think the choice of words is very interesting from Beijing because I didn't hear any talk about retaliation, I didn't hear any talk similar to what we heard regarding Canada, where 5G networks might be held up, Huawei's involvement in building these types of networks, you know, as a penalty might withdraw," Capri said, referring to the next generation of mobile networking technology.

"What that does is that underscores the reality here, and that is that Huawei is incredibly vulnerable," he said, explaining that vulnerability stems from the company's "dependence still on Western tech."

That's why, Capri added, "Beijing is treading very carefully here."

Huawei said in a statement provided to CNBC that it was "disappointed to learn of the charges brought against the company today." Here's the rest of that statement:

After Ms. Meng's arrest, the Company sought an opportunity to discuss the Eastern District of New York investigation with the Justice Department, but the request was rejected without explanation. The allegations in the Western District of Washington trade secret indictment were already the subject of a civil suit that was settled by the parties after a Seattle jury found neither damages nor willful and malicious conduct on the trade secret claim. The Company denies that it or its subsidiary or affiliate have committed any of the asserted violations of US law set forth in each of the indictments, is not aware of any wrongdoing by Ms. Meng, and believes the US courts will ultimately reach the same conclusion.
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