Defense Intelligence Agency Director Lieutenant General Robert Ashley said at the hearing that the Beijing leadership and Chinese Communist party have made it hard for Chinese businessmen to be pure businessmen and avoid suspicion. A key piece of evidence is an internal company announcement sent via email by Huawei to its employees offering them rewards for stealing secret data from rival companies.
In Beijing, government spokesperson Geng Shuang said United States charges were driven by "political motivations" and added that, "We urge them to treat Chinese enterprises in a fair and just way". "We strongly urge the U.S.to stop the unreasonable suppression of Chinese companies including Huawei", the country's foreign ministry said. Huawei also allegedly wrote an erroneous report about its actions to appease T-Mobile, once the American company caught the Chinese company on T-Mobile's premises.
In a 13-count indictment filed in NY, the Justice Department said Huawei misled a global bank and us authorities about its relationship with the subsidiaries, Skycom Tech and Huawei Device USA Inc, in order to conduct business in Iran. Also charged are two of the company's affiliates and its chief financial officer, Meng Wangzhou.
Huawei is 'not aware of any wrongdoing by Ms Meng, and believes the United States courts will ultimately reach the same conclusion, ' it said.
There is no allegation Huawei was working at the direction of the Chinese government. The previous round of US-Sino talks was held in Beijing on January 7-9. After Meng's arrest, the Company sought an opportunity to discuss the Eastern District of NY investigation with the Justice Department, but the request was rejected without explanation.
"The allegations in the Western District of Washington trade secret indictment were already the subject of a civil suit that was settled by the parties after a Seattle jury found neither damages nor willful and malicious conduct on the trade secret claim".
She was later released on bail on condition that she surrender her passports.
Tensions between the U.S. and China are increasing ahead of ministerial-level trade talks scheduled to start on Wednesday. A breakdown in negotiations would likely lead to higher tariffs, a prospect that has rattled financial markets for months. "China trade tensions and could hamper prospects for even a partial deal in the coming weeks", said Eswar Prasad, an economics professor and China expert at Cornell University. 'The difference in understanding will bring about complicated problems'.
Huawei workers in Washington state schemed to steal mobile-phone technology from its corporate partner, T-Mobile, according to a separate indictment.
T-Mobile told the BBC it had no comment to make over the new indictments.
The White House has imposed various economic sanctions against Iran, cracking down on the Mid-East nation's oil exports, banking, and so on.