US Intelligence Says Huawei Funded by Chinese State Security: Report

April 22, 2019 Updated: April 22, 2019

U.S. intelligence has accused Huawei Technologies of being funded by Chinese state security, The Times said on April 20, adding to the list of allegations faced by the Chinese technology company in the West.

The CIA accused Huawei of receiving funding from China’s National Security Commission, the People’s Liberation Army and a third branch of the Chinese state intelligence network, the British newspaper reported, citing a source.

Earlier this year, U.S. intelligence shared its claims with other members of the Five Eyes intelligence-sharing group, which includes Britain, Australia, Canada and New Zealand, according to the report http://bit.ly/2KT7ztd.

The company, the CIA and China’s Foreign Ministry did not respond immediately to requests for comment.

The accusation comes at a time of trade tensions between Washington and Beijing and amid concerns in the United States that Huawei’s equipment could be used for espionage.

Authorities in the United States are probing Huawei for alleged sanctions violations.

Meng Wanzhou, Huawei’s chief financial officer and daughter of its founder, Ren Zhengfei, was arrested in Canada in December at the request of the United States on charges of bank and wire fraud in violation of U.S. sanctions against Iran.

In January, the U.S. Department of Justice (DOJ) unsealed two indictments against Huawei, Meng, and several of the company’s subsidiaries, in a pair of legal cases accusing the company of violating sanctions against Iran, and stealing trade secrets from U.S. mobile carrier T-Mobile.

Amid such charges, top educational institutions in the West have recently severed ties with Huawei to avoid losing federal funding.

Another Chinese technology company, ZTE Corp, has also been at the center of similar controversies in the United States.

U.S. sanctions forced ZTE to stop most business between April and July last year after Commerce Department officials said it broke a pact and was caught illegally shipping U.S.-origin goods to Iran and North Korea. The sanctions were lifted after ZTE paid $1.4 billion in penalties.

Reuters reported earlier this month that the United States will push its allies at a meeting in Prague on May to adopt shared security and policy measures that will make it more difficult for Huawei to dominate 5G telecommunications networks.

By Kanishka Singh. The Epoch Times contributed to this report.

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