馃攳
Chinese Tech Giant Huawei Charged With Racketeering & Property Theft - YouTube
Channel: The Ring of Fire
[2]
The department of justice, once again has
Chinese telecom giant Huawei in its iron sites
[9]
as the company is now being targeted with
charges of racketeering and intellectual property
[14]
theft.
[15]
This is just the latest of the prolonged saga
between the US and the government and, and
[20]
Huawei, which has drawn controversy to its
potential stranglehold on global 5G.
[27]
RT's Michele Greenstein is here to now walk
us through this.
[32]
Michele, first of all, you know the first
thing that comes to my mind is we know the
[37]
history of, of Huawei with them stealing technology
from the US.
[43]
We, that story is an old story.
[46]
We know about the intellectual property theft.
[49]
We know that each administration has promoted
this vibrant relationship between, well at
[56]
least the Democrats primarily through Obama
and through Clinton, were into globalization
[61]
and through globalization we were going to
share everything we could with China.
[66]
Now we have this case it, it seemed like we
should have seen it coming.
[69]
Fill us in on new charges against Huawei,
if you would, set this story up a little bit.
[74]
Sure.
[75]
The new indictment against Huawei and some
of it's subsidiaries builds on older allegations
[80]
that the US brought against Huawei in January
of 2019.
[83]
It's a 16 count superseding indictment that
alleges a conspiracy to violate the RICO act.
[88]
It also adds a charge of conspiracy to steal
trade secrets that, according to the DOJ,
[93]
involves the company's "alleged long-running
practice of using fraud and deception to misappropriate
[99]
sophisticated technology from US counterparts."
[101]
So again, we're talking about intellectual
property theft.
[104]
Now prosecutors say that Huawei efforts to
seal this IP were successful and that they
[109]
were able to obtain IP about robotics, cellular
antenna technology and internet router source
[115]
code.
[116]
Then allegedly the stolen IP allowed the company
to cut their research and development costs
[120]
and delays, giving them what the DOJ calls
an unfair competitive advantage.
[125]
Well, yeah, the, the talk on this thing has
been from the very beginning, you know what?
[130]
We can get cheaper labor here.
[132]
We can cut research and development, we can
steal technology.
[135]
But as I'm, as I'm watching this story and
I know you had to be wondering the same thing,
[141]
doesn't it sound like we're doing the bidding
of companies like Cisco and Motorola?
[146]
Aren't we doing somewhat of the bidding?
[148]
We're kind of changing the standards for free
market by doing the bidding here for American
[154]
or Western corporations and really trying
to focus on Huawei's bad conduct, which by
[160]
the way is very bad.
[162]
And I'm wondering what, what's Huawei's response,
how do they respond to these whole, to these
[168]
charges?
[169]
Where are we with that?
[170]
Well, the company is saying that the evidence
against them is weak and that this new indictment
[174]
is just part of the justice department's attempt
to damage the company's reputation.
[178]
Here's the, the official company response,
"these charges do not reveal anything new.
[183]
They are based largely on resolved civil disputes
from the last 20 years.
[187]
In these disputes, no court has ever found
that Huawei had engaged in malicious IP theft
[192]
or required Huawei to pay damages for infringement
on others' IP."
[197]
Well, you know, that's only part of the story.
[202]
That's really only part of the story.
[203]
That's a great comment by Huawei, but there's
a lot more to that story.
[205]
We don't have time to go into on this one.
[207]
But the point is, I look at this and I say,
you know, don't we see this coming with CAFTA
[214]
and NAFTA and, you know, this attempt by the
Democrats with TPP and the Republican, you
[220]
know, the business type Republicans jumping
behind TPP.
[223]
We, as we globalize, as we expand this whole
global market, isn't it kind of ridiculous
[230]
for the United States to say, ah, they're
ahead of us in technology?
[234]
They, they can get a better deal on labor.
[237]
They can get a better deal on research and
development.
[239]
We can't keep up with those numbers.
[241]
It's either one or the other.
[242]
You can't have it both ways.
[244]
You know, in the past, the US whether it's
the justice department or the state department
[249]
or Congress has leveled accusations that are
against Huawei, and, and it's been the same
[255]
kind of talk that they have some big advantage
over us.
[258]
And that really, if you read between the lines,
it's almost like you're saying, well, free,
[263]
free market capitalism doesn't work where
it comes to globalization.
[266]
What's your take on that, Michele?
[267]
Right.
[268]
Well, the most common allegation that we're
hearing from us officials is that companies
[272]
shouldn't trade with Huawei because Huawei
could be used by Beijing to spy for the Chinese
[276]
state.
[277]
In fact, Huawei like you alluded to, has actually
been designated as a national security threat
[281]
by the US Congress since 2012 even though
no evidence that Huawei spies for the Chinese
[286]
state has been brought yet.
[288]
But Huawei says it's never been asked to install
backdoors in their products and it complies
[292]
with the law in all countries it operates
and the company sees this whole campaign as
[297]
a "well coordinated geopolitical campaign"
against them.
[301]
But what's really interesting here is that
Huawei maintains that it's an employee owned
[305]
company, so it's not beholden to Beijing or
any other government as US officials are repeatedly
[309]
claiming.
[310]
In fact, it says it's because of this, not
IP theft, that it's competing so well because
[315]
it isn't beholden to shareholders and don't
have to make decisions based on short term
[320]
profit or quarterly returns.
[321]
They say this allows them to make high quality
products for cheap prices.
[326]
So this is why it makes sense for all these
countries, 170 of them, in fact, to want to
[330]
do business with Huawei.
[332]
As one example, Huawei spent $15 billion on
research and development last year in 2019
[337]
while it's primary US-based competitor, Qualcomm,
spent under five and a half billion dollars
[342]
on R and D that same year.
[344]
So they say it's simply a matter of where
they're allocating their money.
[348]
Okay, Michele got to go.
[350]
Thanks for joining me.
[351]
Okay.
[352]
Thanks a lot.
Most Recent Videos:
You can go back to the homepage right here: Homepage