Huawei’s Legal Problems in the United States
Huawei’s Legal Problems in the United States continue on multiple fronts. The Chinese tech giant has been the target of the U.S. Senate, The Department of Justice, and has had a case against U.S. Government contracts ban dismissed before going to court.
Department of Justice Actions
In an ongoing indictment the U.S alleges that Huawei participated in a fraudulent scheme to export banned U.S. goods and technologies for its business in Iran. Although Huawei has denied these allegations, Reuters has reported that recently released company records show that the company was directly involved in these actions. This could lead to Huawei’s chief financial officer, Meng Wanzhou’s extradition from Canada where she is being held on bank fraud and other allegations.
US Senate Actions
The Wall Street Journal reported that the U.S. Senate approved a bill that would replace Huawei Technology Co. telecom equipment in rural areas. The bill would provide $ 1 billion in funding for approximately 40 rural carriers to replace equipment that could be used by the Chinese government to spy on communications routed through their equipment. The bill will now move on to President Trump who will likely sign it into law. Telecommunications Industry Association chief executive David Stehlin commented that the legislation was “a critical step in securing our network and ensuring the integrity of the telecommunications supply chain as we usher in the 5G era.”
A lawsuit that challenged a U.S. law barring the government from using Huawei equipment, was dismissed in a federal court in Texas before going to trial. This ban further underlines the U.S. governments security concerns of using the company’s products. These concern has been very strong among lawmakers in both parties in light of continued cyberattacks and intellectual property theft by agents of the Chinese government.
What This Means for U.S. Businesses
Businesses will have to exercise increased vigilance regarding the security of intellectual properties and technologies. This will involve developing and improving processes involving export compliance and cyber security. CVG Strategy has the expertise to help businesses of all sizes meet these challenges. Contact Us today to see how we can help.