In the wake of the rising tension between the US and the Chinese electronics maker Huawei, a new leaf has turned. The US Intelligence has accused Huawei Technologies of being funded by the Chinese state security. On Saturday, a report by The Times read that the new finding has added to the list of the allegations faced by Huawei Technologies in the US.
According to reports, the accuser is none other than the Central Intelligence Agency (CIA) who said that Huawei is receiving funding from China’s National Security Commission, the People’s Liberation Army along with a third batch of Chinese state Intelligence network. It should be noted that earlier in 2019, US Intelligence had shared its claims about the company to other members of the Five Eyes Intelligence-sharing group – Britain, Australia, Canada and New Zealand.
But Huawei has dismissed the allegations put on it, and in a statement a representative of the company said, “Huawei does not comment on unsubstantiated allegations backed up by zero evidence from anonymous sources.” The company along with the CIA and the Chinese state security agencies did not respond to the allegations and the news itself.
It should be noted that the new development between the US and the Chinese company comes at a time when the trade tensions between the US and Huawei are high. The US is also concerned that the equipment’s made and sold by Huawei could be used for espionage and spying but the smartphone maker has defended itself by saying that the concerns are unfounded. The authorities in the US are also probing the Chinese company for alleged sanctions violations.
Moreover, at the request of the US, last year Meng Wanzhou, Huawei’s chief financial officer and the daughter of the company’s founder Ren Zhengfei were arrested in Canada. The US had put them under the charges of bank and wire fraud in violation of US sanctions against Iran. Even the founder of the company was arrested earlier, it was said that the arrest was ‘politically motivated’.
To the allegations put against her and the company, Wanzhou denied the wrongdoings and the allegations. With the tensions rising, the top educational institutions in the West have also severed their ties with Huawei to avoid losing federal funding.
Other than Huawei, another Chinese tech company, ZTE has also been with bad terms with the US on similar controversies. Last year between April and July, US sanctions forced ZTE to stop most of its business after the Commerce Department officials said that the company broke a pact. They also caught ZTE illegally shipping US-origin goods to Iran and North Korea. But the sanctions against the company was lifted after ZTE paid $1.4 billion in penalties.
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