US files criminal charges against Huawei

The United States Justice Department has filed several criminal charges against Chinese telecommunications company Huawei and its chief financial officer,  Meng Wanzhou, who was arrested in Canada in December, the BBC reports.

Charges – 23 in total – include bank fraud, obstruction of justice and technology theft, all of which Huawei, the world’s second largest smartphone maker, denies.

The case is expected to add more tension to the US-China relationship.

“For years, Chinese firms have broken our export laws and undermined sanctions, often using US financial systems to facilitate their illegal activities. This will end,” said US Commerce Secretary Wilbur Ross.

One indictment alleges that Huawei misled the US and a global bank about its relationship with two subsidiaries in order to conduct business with Iran, where the US had imposed sanctions.

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A second case says that Huawei stole technology from T-Mobile, obstructed justice and committed wire fraud.

Huawei has been under pressure in several Western countries who have feared that the company’s close relationship with the Chinese government could mean that China was using devices to spy on foreign countries.