US Charges Huawei of Violating Sanctions on Iran

The United States accused Monday Huawei with violating sanctions against Iran as it unveiled a number of charges against the Chinese telecommunications giant.

The US Justice Department unveiled 13 charges against chief financial officer Meng Wanzhou -- the daughter of the company's founder who is currently out on bail in Canada -- and three affiliates related to violating US sanctions on Iran.

It said the company and Meng conspired to violate the sanctions by doing business through a subsidiary it tried to hide and that was reported on by Reuters in 2012.

In addition, 10 US federal charges were filed against two Huawei affiliates for stealing robot technology from T-Mobile.

"Both sets of charges expose Huawei's brazen and persistent actions to exploit American companies and financial institutions, and to threaten the free and fair global marketplace," said FBI Director Christopher Wray.

Meng -- who was arrested at in Vancouver on December 1 at Washington's request -- is expected to fight extradition to the United States, amid heavy pressure on Canada from Beijing, whose subsequent detention of two Canadians is seen as an act of retaliation for Meng's arrest.

Acting US Attorney General Matthew Whitaker said the extradition request would be sent by a January 30 deadline.

A hearing is set for February 6.

Whitaker said there was nothing in the indictment that alleged Chinese government involvement in either case.

However, he added, "As I told Chinese officials in August, China must hold its citizens and Chinese companies accountable for complying with the law."

On Tuesday, Beijing accused Washington of waging a politically motivated “smear campaign” against it.

"For some time, the US has used state power to smear and suppress specific Chinese companies in an attempt to stifle their legitimate business activities," foreign ministry spokesman Geng Shaung said at a regular briefing.

"We strongly urge the US to stop the unreasonable suppression of Chinese companies including Huawei and to treat them fairly and objectively. China will also resolutely defend the legitimate rights and interests of Chinese enterprises."

In a statement sent to AFP, Huawei said it was "disappointed" and denied that it committed any of the allegations.

It added that it was "not aware of any wrongdoing by Ms. Meng (Wanzhou), and believes the US courts will ultimately reach the same conclusion."

Huawei makes equipment including base stations, switches and routers, as well as consumer products such as smartphones, and derives nearly half of its total revenue outside China.

Its global reach has come under attack from the United States, which is trying to prevent US companies from buying Huawei equipment and is pressing allies to do the same. US security experts are concerned the gear could be used by China’s government for espionage - a concern Huawei calls unfounded.

Australia and New Zealand followed the US lead in restricting market access over the past year. On Tuesday, TPG Telecom Ltd canceled the Huawei-based mobile phone network it was building, in the first commercial casualty of Australia’s move.