Daily Management Review

China's Huawei And ZTE Targeted In Bipartisan Bills Introduced In US


China's Huawei And ZTE Targeted In Bipartisan Bills Introduced In US
Bills were introduced in the United States Congress by a bipartisan group of US lawmakers seeking to pass a law that would put a ban on the sale of chips or other components made by US companies to Chinese telecommunications companies including Huawei Technologies Co Ltd and ZTE Corp that are or come under under the scanner for violation of export control laws or US sanctions.
On the same day that the bill was introduced, a report in the Wall Street Journal claimed that allegations of Huawei having stolen trade secrets from T-Mobile US Inc and other US businesses is being investigated by federal prosecutors. According to the report, there can be an indictment soon against Huawei charging that the Chinese tech company had stolen a T-Mobile technology called Tappy which imitated human fingers and was used in testing of smartphones.
After a US jury verdict that found "neither damage, unjust enrichment nor willful and malicious conduct by Huawei in T-Mobile's trade secret claim", Hiawei had settled the dispute with T-Mobile in 2017, said the Chinese firm in a statement.
There have been allegations put forward against China that it used fraudulent means to conduct theft of intellectual property, provide illegal corporate subsidies and implement regulations that created barriers for US companies from accessing the Chinese market. The Trump administration has taken some measures in the past and t his proposed legislation is one in the long list of such measures.
With the aim of bringing trade secret theft cases, an initiative to investigate China‘s trade practices was unveiled by the US Department of Justice in November.
The bill which would mandate the US president to ban the export of US components to any Chinese telecommunications company that are believed to have violated US sanctions or export control laws was introduced by Senator Tom Cotton and Representative Mike Gallagher, both Republicans, along with Senator Chris Van Hollen and Representative Ruben Gallego, both Democrats.
ZTE and Huawei have been specifically cited in the proposed bill as both the Chinese companies are viewed with suspicion in the US as there are concerns that the equipment that these two companies supply can be used by Chinese agencies to spy on Americans. The US has also accused both the companies of having violated the US sanctions on Iran.
"Huawei is effectively an intelligence-gathering arm of the Chinese Communist Party whose founder and CEO was an engineer for the People's Liberation Army," Cotton wrote in a statement. "If Chinese telecom companies like Huawei violate our sanctions or export control laws, they should receive nothing less than the death penalty - which this denial order would provide."
While taking measures themselves, the US has also been urging its allies and companies in allied countries not to use equipment supplied by Huawei for telecommunication networks because of the possibilities of Chinese agencies using such equipment to spy on citizens of those countries.