Huawei's racketeering charge in US will slow its 5G global penetration
THE US has charged Shenzhen's Huawei Technologies with new racketeering offences, that is intellectual property theft, reported Caixin
THE US has charged Shenzhen's Huawei Technologies with new racketeering offences, that is intellectual property theft, reported Caixin.
A racket, according to Wikipedia, is an organised criminal act to earn money typically by extortion by offering a service to solve a problem that would not exist without the racket, eg, the protection racket.
Huawei, the world's largest maker of telecommunications equipment, and chief financial officer Meng Wanzhou had already faced criminal charges. The fresh allegations include racketeering. They come as the global battle for supremacy in fifth-generation wireless technology, or 5G, is intensifying.
Huawei broke the law 'to drastically cut its research and development costs and associated delays, giving the company a significant and unfair competitive advantage', the Justice Department alleges. The company even launched a bonus programme to reward employees who got their hands on confidential information from competitors, it said.
Huawei, in turn, has accused the US of orchestrating a campaign to intimidate its employees and launching cyberattacks to infiltrate its internal network. China's Ministry of Foreign Affairs has urged the US to 'stop unreasonably targeting Huawei and other Chinese enterprises.'