China's Huawei may face another bump in the road in the US. Washington lawmakers have introduced new bill that will ban the sale of some US tech hardware to Huawei and fellow Chinese tech firm, ZTE. Both Republicans and Democrats put the bills forward on Wednesday. If passed, they block the sale of US ships and parts to Chinese telecom companies that violates US sanctions.
Both Huawei and ZTE have been accused of skirting sanctions on Iran. It's also the latest in a string of US efforts to fight what some Trump administration officials called intellectual property theft sanctioned by Beijing. And as Reuters' Anne Marie Roantree explains, the bill's also part of a US-led push to deal with security fears over Chinese-made hardware.
>> For Huawei in particular, we are seeing nearly everyday stories of Western governments raising fears or concerns over what they say are links to the Chinese government. I mean, these claims and accusations that Huawei has consistently, repeatedly denied. But the Americans, their greatest fear is that the equipment of Huawei and ZTE can be used to spy on Americans.
There was a ban imposed last year on ZTE on American companies selling parts to ZTE because it violated US sanctions. That had a crippling effect on ZTE. So if this bill actually does go through I would think, and analysts have said, that they would expect a similar impact on the company.
>> Huawei has consistently died any ties with Chinese espionage. The company's founder and CEO said this week that Beijing didn't even own one cent of Huawei. And on Thursday, China's Foreign Ministry called the proposed US laws, quote, hysteria. The new bills came within hours of a Wall Street Journal report that revealed federal prosecutors are investigating Huawei over allegations the firm stole trade secrets from T-Mobile and other US companies.
The journal's report said an indictment could be coming soon on charges Huawei stole technology T-Mobile uses for quality control tests on touchscreens. After a US jury found the company had not acted maliciously regarding trade secret claims.>>