Huawei has been hit with a lot of bad news over the last few years. Last week, they were under fire for their new phone’s fingerprint sensor not working as well as expected on some handsets. However, this week, Huawei seems to be back on track with a major victory- resolving criminal charges in a deal with US authorities that will allow them to do business in America again.
The company had been facing charges of stealing trade secrets and violating sanctions against Iran among others before it reached an agreement with the Trump administration. Under the agreement, Huawei will get to retain its current staff and continue doing business in America. However, it must pay $1 billion for violating sanctions and another $400 million for stealing trade secrets from T-Mobile.
Huawei had been banned by the Commerce Department last month after an investigation into whether or not they were spying on Americans using their devices. Huawei’s Chief financial officer was arrested in Canada and is facing extradition to the United States for allegedly trying to violate sanctions against Iran.
Media outlets have been reporting that Huawei violated sanctions and copied trade secrets from T-Mobile among other companies in order to gain a business advantage. According to the US government, the company had stolen technology from at least 45 American companies, including T-Mobile. They said that the company was using American components to build their devices around the world but refused to use them in America out of fear they would discover their illegal activities.
“Huawei has never stolen trade secrets or engaged in any nefarious activity…for nearly 20 years”. The Chinese company’s statement read.
The Chinese company is already facing harsh sanctions in the US and Australia, but this new agreement between them and the Trump administration will finally provide clarity for companies that have been trying to do business with Huawei. The charges will be dropped if they keep their word on the agreement. Huawei was very pleased with the results of its negotiations with America’s government, saying that they were “pleased to have resolved this issue.”
President Trump also commented on the resolution of charges, saying that he is a “Tariff Man,” and will do anything to force companies like Apple to use more American-made parts in their devices. He further stated that Huawei is an important company for China’s economy and growth and that the US had been unfair to them by preventing them from doing business with American companies.
Huawei was already struggling to provide their new phone, the Mate 30 Pro for pre-order after carriers across the world have decided not to do business with them for fear of being sanctioned themselves. The company will be forced to use a smaller number of chips to build their devices after the US government began blocking its components from being used in new Huawei phones.
Huawei said that it has “never stolen trade secrets or engaged in any nefarious activity” and appreciates “the global commerce environment.” The company further stated that they are looking forward to continuing doing business with America’s companies.
The Chinese company is the world’s largest telecommunications equipment manufacturer and recently surpassed Apple as the second highest-selling smartphone in the US. Their devices have been growing popular in America over the last year after being almost completely shut out from their market for years. They have been facing increased scrutiny from American lawmakers over spying allegations for several years now, but its new deal with the Trump administration will provide much-needed clarity for them and American companies.
The deal, which requires Huawei to pay $1 billion for sanctions violations and another $400 million for stealing trade secrets has been well-received by the Chinese company as well as America’s president. President Donald Trump commented on Huawei’s promises to not do business with Iran again and said that he will do anything to force American companies to buy parts from America’s manufacturers.