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Charges Against Chinese Telecom Giant Spotlight CCP-Sponsored Intellectual Property Theft

Intellectual-property theft should be high on the agenda when President Trump meets with Xi Jinping this month.

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A high-profile criminal trial against Chinese telecom giant Huawei Technologies opened in Brooklyn federal court last week, highlighting China’s state-sponsored intellectual property (IP) theft.

Huawei is one of the largest information technology companies in China and globally, selling products such as smartphones, telecommunications equipment, and AI chips. Its founder, Ren Zhengfei, once served in the People’s Liberation Army, which has led to close ties with the Chinese government and military. A 2012 report from the U.S. House Permanent Select Committee on Intelligence warned that using equipment from Huawei and another Chinese company, ZTE, in U.S. networks could allow Chinese intelligence to spy or disrupt critical communications through hidden bugs or backdoors.

The case now being considered by Judge Ann Donnelly started with a 2018 probe into whether Huawei had breached U.S. sanctions by transporting telecom equipment and carrying out related business via Iran. Meng Wanzhou, Huawei’s chief financial officer and Ren’s daughter, was arrested in Vancouver on a U.S. warrant and faced extradition to the United States. Chinese intelligence was reportedly ordered to prevent Meng’s extradition for fear she might disclose sensitive information. Shortly after her arrest, China detained the former Canadian diplomat Michael Kovrig and the businessman Michael Spavor on espionage charges.

In 2021, the U.S., Canada, and China reached an agreement under which Meng returned to China on the basis of a deferred-prosecution agreement, and the two Canadians were released. In a statement of facts, Meng acknowledged that she had made material........

© The Federalist