Politicized US Charges Against Huawei and Its CFO
Huawei is a privately owned Chinese tech giant, the world’s largest telecom equipment manufacturer, the second largest smartphone maker.
It’s leading the race to roll out next generation cutting-edge 5G technology of mobile Internet use, ahead of US and European competitors. At stake are trillions of dollars of economic value, why it’s targeted by Washington.
On Monday, the US Justice Department charged Huawei and its chief financial officer Sabrina Meng Wanzhou with 13 counts of financial fraud, money laundering, wire fraud, bank fraud, conspiracy to defraud the US, obstruction of justice, and violation of (illegally imposed) US sanctions on Iran no one should observe.
The indictment named Huawei, two company affiliates, and Meng. The parent company and one of its affiliates were charge with violating the 1977 US International Emergency Economic Powers Act (IEEPA).
It permits the regulation of commerce after declaring a national emergency in response to an alleged threat to America by a foreign state – despite none existing since WW II ended, notably none posed by Russia, China, Iran, and other nations victimized by US aggression and other hostile actions.
Meng is charged with bank fraud, wire fraud, and conspiracy to commit bank and wire fraud. The Trump regime formally requested Canada to extradite her to the US. Currently she’s illegally held under house arrest in Vancouver.
A second 10-count US indictment charges Huawei and its US affiliate with theft of trade secrets from T-Mobile USA, wire fraud, and obstruction of justice – including the allegation that Huawei “offer(ed) bonuses to employees who succeeded in stealing confidential information from other companies.”
Meng, Huawei, and Beijing are contesting US actions judicially and politically. China denies engaging in intellectual property theft and forced technology transfers – saying the latter comes from agreements with US companies in return for their access to China’s market.
Huawei issued a statement “den(ying) 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 Meng, and believes the US courts will ultimately reach the same conclusion.”
On Tuesday, China’s Foreign Ministry spokesman Geng Shuang responded to US actions, calling on the Trump regime “to treat Chinese companies (and its officials) in an objective and fair manner,” adding:
“The US has been running a campaign against specific Chinese companies by using state power and has been trying to strangle their legitimate operations, which reveals their strong political intention and manipulation.”
“The United States has been using state power to smear and attack specific Chinese enterprises, destroying the legitimate operations of the companies.”
“There is strong political motivation and manipulation behind it. China is determined to protect legitimate rights of Chinese companies.”
China’s Global Times said the US wants Huawei undermined globally, “Washington…pushing its allies hard to exclude (the company’s) equipment from their 5G networks,” adding:
“Washington is playing political tricks under legal pretext…It won’t be easy for the US to convict Huawei. The company can start a court confrontation with the US government using legal means.” Beijing will aid Huawei with political and other support.
US charges and formal request for Meng’s extradition further heighten Sino/US tensions ahead of continuing trade talks.
What’s going on is all about Washington’s aim to undermine Beijing’s Made in China 2025 strategy.
It aims to advance 10 economic sectors to world-class status, including information technology, high-end machinery and robotics, aerospace, marine equipment and ships, advanced rail transport, new-energy vehicles, electric power, agricultural machinery, new materials and biomedical products.
In May 2015, China’s State Council unveiled a 10-year plan to transform the country into a global industrial and high-tech manufacturing power.
Follow-up plans aim to further enhance China technologically and industrially by 2049, the People’s Republic of China’s 100th anniversary.
Beijing agreed to substantially increase US imports. It will not abandon or curtail its developmental agenda, key for the country’s future and ability to create jobs for its workers – an irreconcilable difference between both countries trade talks won’t resolve.
The US under Republicans and undemocratic Dems want all nations colonized, their ruling authorities subordinating their sovereignty to US interests – what China, Russia, Iran and other countries won’t ever agree to, why unthinkable nuclear confrontation remains an ominous possibility.
My newest book as editor and contributor is titled “Flashpoint in Ukraine: How the US Drive for Hegemony Risks WW III.”