Huawei labeled a 'criminal enterprise' as trial begins in US
What's the story
The trial against Chinese tech giant Huawei kicked off in Brooklyn federal court on Wednesday (local time). A US prosecutor has called Huawei a "criminal enterprise" that stole from American companies to expand its telecommunications empire. Taylor Stout, a trial attorney with the US Department of Justice, accused the company of two decades of theft and deception against American firms.
Theft allegations
Theft and deception to expand telecom empire
Stout alleged that Huawei conspired to steal trade secrets from five US companies, including Cisco Systems and T-Mobile.
He claimed the company sought an unfair competitive edge and expansion by stealing technology such as operating system source code for internet routers and a robotic arm for testing phones.
Stout also said there was video evidence of an employee stealing the robotic arm.
Defense strategy
No 'blueprint for crime': Huawei's defense team
In stark contrast to the prosecution's claims, Huawei's defense team has argued that the company's success is rooted in innovation and competition, not theft or conspiracy.
Brian Heberlig, one of Huawei's lawyers, said there was no "blueprint for crime" and emphasized that it was about "ordinary business dealings."
Heberlig also claimed that incidents involving Cisco and T-Mobile were actions by individual employees and that management worked to make things right after learning of them.
Business overview
Banned from selling equipment to US carriers
Huawei, the world's largest supplier of wireless telecom network gear, is banned from selling equipment to US carriers over security concerns.
The company has also been blacklisted by other Western allies such as Canada and Britain.
Despite these challenges, Huawei continues to operate globally and has expanded its product range to include AI chips in recent years.
Government response
Chinese government opposes US actions against Huawei
A spokesperson for the Chinese foreign ministry has opposed the US's actions against Huawei.
The official said, "The Chinese government firmly opposes the US side's suppression and containment of Chinese enterprises."
The case against Huawei dates back to 2018 when it was indicted along with its chief financial officer for bank fraud and sanctions violations over alleged misrepresentation of its business in Iran to circumvent US sanctions.
Trial expansion
Case has expanded into a sprawling indictment
Over the years, the case against Huawei has expanded into a sprawling indictment that includes racketeering.
Heberlig defended his client by saying prosecutors would twist ordinary activities of global tech companies to make them look criminal.
He also said there was no evidence that Huawei knew its dollar-clearing operations would violate US sanctions law.