Press Release | CPA Supports Racketeering Case against Huawei

February 14, 2020

Chinese telecom giant has stolen its way to high-tech dominance

Washington. The Coalition for a Prosperous America (CPA) today praised the Trump administration for charging Huawei Technologies Co. and two U.S. subsidiaries with racketeering and intellectual property theft. CPA strongly supports federal efforts to prosecute Huawei and other state-owned enterprises in China that engage in systematic IP theft of U.S. tech firms.

“Huawei is an arm of the Communist Party of China,” said CPA Chair Dan DiMicco. “It became the world’s largest telecom equipment company by stealing the technologies used in its products. The whole world knows that Chinese companies engage in hacking and industrial espionage. It’s past time to take action. We congratulate the Trump administration for bringing this case against Huawei.”

Huawei has been repeatedly accused of intellectual property violations, including the theft of both Motorola’s wireless technology and Cisco’s router code. Huawei has also been accused of spying on behalf of the Chinese government. Recently, the telecom firm Vodafone found that internet routers purchased from Huawei contained hidden “backdoors” able to reveal confidential information.

The new federal indictment alleges that Huawei hacked intellectual property related to robotics, cell phone technology, and router source code. The allegations add credence to concerns that Huawei’s current dominance in 5G networks could threaten America’s digital security. The Trump administration is now urging foreign governments to block Huawei from providing 5G equipment.

“The United States and other western countries needs to ban Huawei from supplying wireless equipment to telecom networks, consumers, and businesses,” said Michael Stumo, CEO of the CPA. “Washington must also help U.S. firms to develop 5G systems. National and economic security are at risk if the United States can’t supply its own networks and other sensitive digital applications.”

Click here to read CPA Chief Economist Jeff Ferry’s recent article, ‘We Need a 5G Wireless Technology Made in the USA.’

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