USA Trade Deal with China Pivots on Huawei

Could it be that the Trump administration has the ace-in-the-hole when it comes to forcing the hand of China? Could it be that China is finally caught due to Huawei?

There is a 13-count indictment against the Chinese telecommunications giant Huawei Technologies, alleging the company took part in a long-running scheme in which it deceived the U.S. government about its business dealings with Iran.

Could it be that European countries that are pressing to stay in the JCPOA deal with Iran could eventually be implicated as well?

Huawei-et-al.-Press-Release-(1)

BROOKLYN, N.Y. – A 13-count indictment was unsealed earlier today in federal

court in Brooklyn, New York, charging four defendants, all of whom are affiliated with

Huawei Technologies Co. Ltd. (Huawei), the world’s largest telecommunications equipment

manufacturer, with headquarters in the People’s Republic of China (PRC) and operations

around the world. The indicted defendants include Huawei and two Huawei subsidiaries

—

Huawei Device USA Inc. (Huawei USA) and Skycom Tech Co. Ltd. (Skycom) —

as well as Huawei’s Chief Financial Officer (CFO) Wanzhou Meng (Meng).

The defendants Huawei and Skycom are charged with bank fraud and conspiracy

to commit bank fraud, wire fraud and conspiracy to commit wire fraud, conspiracy to

defraud the United States, conspiracy to violate and substantive violations of the

International Emergency Economic Powers Act (IEEPA), and conspiracy to commit

money laundering. Huawei and Huawei USA are charged with conspiracy to obstruct

justice related to the Grand Jury investigation in the Eastern District of New York. Meng

is charged with bank fraud, wire fraud, and conspiracy to commit bank and wire fraud.

“As charged in the indictment, Huawei and its subsidiaries, with the direct and

personal involvement of their executives, engaged in serious fraudulent conduct,

including conspiracy, bank fraud, wire fraud, sanctions violations, money laundering and

the orchestrated obstruction of justice,” stated United States Attorney Donoghue. “For

over a decade, Huawei employed a strategy of lies and deceit to conduct and grow its

business. This Office will continue to hold accountable companies and their executives,

whether here or abroad, that commit fraud against U.S. financial institutions and their

international counterparts and violate U.S. laws designed to maintain our national

security.” Mr. Donoghue thanked the FBI, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, U.S. Department of Commerce Office of Export Enforcement and the Defense Criminal Investigative Service agents who are

investigating this case for their tireless work and dedication.

“These charges lay bare Huawei’s blatant disregard for the laws of our country

and standard global business practices,” stated FBI Director Wray.

“Companies like Huawei pose a dual threat to both our economic and national security, and the magnitude of these charges make clear just how seriously the FBI takes this threat. Today should serve as a warning that we will not tolerate businesses that violate our laws, obstruct justice, or jeopardize national and economic well-being.”

“As charged in the indictment, Huawei and its Chief Financial Officer broke U.S.

law and have engaged in a fraudulent financial scheme that is detrimental to the security

of the United States,” stated U.S. Department of Homeland Security Secretary Nielsen.

“They willfully conducted millions of dollars in transactions that were in direct violation

of the Iranian Transactions and Sanctions Regulations, and such behavior will not be

tolerated. The Department of Homeland Security is focused on preventing nefarious

actors from accessing or manipulating our financial system, and we will ensure that

legitimate economic activity is not exploited by our adversaries. I would like to thank

ICE Homeland Security Investigations for their exceptional work on this case.”

“For years, Chinese firms have broken our export laws and undermined sanctions,

often using the U.S. financial systems to facilitate their illegal activities,” stated U.S.

Department of Commerce Secretary Ross.