U.S. charges Huawei with racketeering, alleges it stole tech

This development will make it harder for the Canadian government to allow Huawei to participate in 5G

The United States has added a charge of racketeering conspiracy against Huawei, which is already facing a number of charges for violating U.S. sanctions.

This new charge alleges that Huawei has stolen technology from six American companies.

The charge comes from Huawei’s “alleged long-running practice of using fraud and deception to misappropriate sophisticated technology from U.S. counterparts,” according to the U.S. attorney in New York, as reported by Bloomberg. 

If the Chinese company is convicted, these new charges would increase the penalties that Huawei would face. It would also give the United States more leverage to push its allies, including Canada, to ban Huawei from participating in the rollout of 5G.

Canada is currently conducting a security review to determine whether Huawei would pose a risk to the country. U.S. officials have already warned Canada that if it allows Huawei to participate in 5G, it would threaten intelligence sharing between the two countries.

Although the criminal case in the U.S. is moving forward, Huawei CFO Meng Wanzhou’s case is on hold in Vancouver. Meng is currently fighting extradition to the U.S. and the Canadian government is deciding whether U.S. allegations are only a crime in Canada.

Source: Bloomberg