Huawei is reportedly under federal investigation by the U.S. Justice Department

Chengdu Sichuan  China- huawei retail store in downtown Chengdu. Image by B Zhou  Shutterstock

Chengdu Sichuan China- huawei retail store in downtown Chengdu. Image by B Zhou Shutterstock

Neither the US Justice Department, nor Huawei, provided comment for the article.

The investigation is at an advanced stage, and an indictment could come soon, according to the person familiar with the matter.

Huawei said in a statement the company and T-Mobile settled their disputes in 2017 following a U.S. jury verdict that found "neither damage, unjust enrichment nor willful and malicious conduct by Huawei in T-Mobile's trade secret claim".

It's no secret that Huawei and the USA government don't see eye to eye.

A bipartisan group of legislators in the United States has introduced bills that would prohibit the sale of USA chips or other components to Chinese telecommunications companies that violate Washington's sanctions or export control laws.

The Democratic senator Chris Van Hollen said in the same statement: "Huawei and ZTE are two sides of the same coin".

For its part, ZTE agreed a year ago to pay a $1 billion fine to the United States that had been imposed because the company breached a U.S. embargo on trade with Iran.

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Huawei has been under increasing pressure in the U.S., Europe and elsewhere amid growing concerns that Beijing could use the company's equipment for spying, something Huawei executives have denied.

"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", said Republican senator Tom Cotton, one of the bill's sponsors. Another time, a Huawei employee, smuggled into the testing lab by two other men working for the company, snapped photographs of "Tappy".

T-Mobile initially sued Huawei in 2014 for the actions of its employees and in May 2017 won US$4.8 million against the company, but this was only a fraction of what the mobile service provider sought.

Huawei CFO Meng Wanzhou was arrested in the Canadian city of Vancouver on 1 December 2018, reportedly, for failing to comply with the U.S. sanctions against Iran, and now faces extradition to the United States.

United States officials and industry executives have long harboured questions about Huawei's ties to China's government, and concerns about its technology have mounted in lockstep with its growing success.

This week, Huawei CEO and founder Ren Zhengfei, who is also the father of Meng Wanzhou, held a rare meeting with worldwide media, during which he denied that Huawei would ever spy for the Chinese government.

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