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How the US indictments may play out for Huawei

  • Huawei faces almost two dozen charges by the US, which contends that it stole trade secrets, violated Iran sanctions

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Huawei Technologies faces nearly two dozen charges by the US, which contends that the company stole trade secrets, violated economic sanctions and concealed its Iran business dealings via an unofficial subsidiary. Photo: Reuters
Zen Sooin Hong KongandLi Taoin Shenzhen

Huawei Technologies could face repercussions that are more severe than rival ZTE Corp if it is found guilty of violating sanctions on Iran, industry watchers say, because the US political climate has become more negative and wary of China’s technological and economic ambitions.

Huawei, the world’s biggest telecommunications network equipment supplier, faces nearly two dozen charges by the US, which contends that the company stole trade secrets, violated economic sanctions and concealed its Iran business dealings via an unofficial subsidiary.

US law enforcement have investigated the company for more than a decade. Its chief financial officer, Sabrina Meng Wanzhou, was arrested in Canada in December and awaiting the outcome of extradition proceedings to the US. Meanwhile, Britain, Germany, Australia, New Zealand and Canada are among US allies that have either banned or are reviewing whether to allow Huawei equipment to be installed in their telecoms networks.

“It is likely that Huawei will receive a very big fine,” said David De Cremer, a professor at the National University of Singapore and author of Huawei: Leadership, Culture and Connectivity. “Such a decision would communicate to allies of the US to join in this battle and push Huawei out of their markets.”

A guilty verdict would also give the US the reason to block Huawei from funding research at US universities and research institutions.

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