Huawei facing US criminal charges over tech theft

US authorities are pursuing criminal charges against Chinese tech giant Huawei.

In this Jan. 9, 2019, photo, a security guard stands near the Huawei company logo during a new product launching event in Beijing. The Chinese Foreign Ministry said late Friday, Jan. 11, 2019, it is "closely following the detention of Huawei employee Wang Weijing" on charges of allegedly spying for China, and has asked Poland to "handle the case lawfully, fairly, properly and to effectively guarantee the legitimate rights of the person, his safety and his humanitarian treatment," according to state broadcaster CCTV. (AP Photo/Andy Wong)

US Federal prosecutors are pursuing a criminal investigation of China’s Huawei Technologies for allegedly stealing trade secrets from US business partners, including the technology behind a robotic device called “Tappy” that T-Mobile US used to test smartphones, according to people familiar with the matter.

The investigation grew in part out of civil lawsuits against Huawei, including one in which a Seattle jury found Huawei liable for misappropriating robotic technology from T-Mobile’s Bellevue, Washington, lab, the people familiar with the matter said. The probe is at an advanced stage and could lead to an indictment soon, they said.

A Justice Department spokesman declined to comment.

A Huawei spokesman declined to comment. The company contested the T-Mobile case, but conceded that two employees acted improperly.

The federal investigation puts added pressure on the Chinese technology giant, the world’s largest maker of telecommunications equipment and the No.2 maker of smartphones worldwide. It comes amid a broader push by the Trump administration to aggressively pursue claims of intellectual property theft and technology transfer by Chinese companies.

Huawei has long been under scrutiny by the US, which has effectively blocked the Chinese telecom company from installing its equipment in major US networks because of concerns that its gear could be used to spy on Americans.

Huawei has forcefully denied that it is a security threat, says it is owned by its employees and operates independently of the Beijing government.

US pressure on Huawei has been building. Last month, Canadian authorities arrested Huawei chief financial officer Meng Wanzhouat the request of US authorities. Ms Meng, the daughter of company founder Ren Zhengfei, is accused of misleading banks about the nature of Huawei’s business in Iran, leading to violations of US sanctions on the country.

Ms Meng has denied the charges, and Huawei says it follows the law in all countries where it operates.

In another development, Polish authorities last week arrested Huawei executive Wang Weijing and charged him with conducting espionage on behalf of the Chinese government. Huawei wasn’t accused of wrongdoing, and the company on Saturday terminated Mr Wang’s employment.

Dow Jones Newswires