{"id":2660735,"date":"2026-09-14T09:27:54","date_gmt":"2026-09-14T13:27:54","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/utm_sourcerssutm_mediumrssutm_campaigncharges-against-chinese-telecom-giant-spotlight-ccp-sponsored-intellectual-property-theft\/"},"modified":"2026-09-14T09:30:48","modified_gmt":"2026-09-14T13:30:48","slug":"utm_sourcerssutm_mediumrssutm_campaigncharges-against-chinese-telecom-giant-spotlight-ccp-sponsored-intellectual-property-theft","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/utm_sourcerssutm_mediumrssutm_campaigncharges-against-chinese-telecom-giant-spotlight-ccp-sponsored-intellectual-property-theft\/","title":{"rendered":"Charges Against Telecom Giant Spotlight CCP-Sponsored IP Theft"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">16<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Futm_sourcerssutm_mediumrssutm_campaigncharges-against-chinese-telecom-giant-spotlight-ccp-sponsored-intellectual-property-theft%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2660735&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>A high-profile trial has recently opened in Brooklyn federal court against Chinese telecom giant Huawei, focusing on allegations of Chinese <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/bombshell-report-reveals-ccp-student-espionage\/\" title=\"Bombshell Report Reveals CCP Student ...\">state-sponsored intellectual property<\/a> theft. Huawei, a major global provider of smartphones, telecom equipment, and AI chips, has close ties to the Chinese government and military, raising concerns about espionage and security risks, especially regarding its equipment potentially enabling Chinese intelligence gathering.The case traces back to a 2018 investigation into Huawei&#8217;s violation of U.S.sanctions by conducting business via Iran, involving the arrest of CFO meng Wanzhou in Canada and subsequent diplomatic tensions. Meng pleaded guilty to misrepresenting Huawei\u2019s dealings with Iran, leading to her return to China, while charges against Huawei include racketeering, trade secret theft, and fraud-accusations that allege the company engaged in long-term schemes to steal technology from U.S. firms like Cisco and T-Mobile. DOJ prosecutors characterized Huawei\u2019s actions as criminal and part of a broader pattern of theft and deception supported by the Chinese government, which is facilitated by laws like China&#8217;s 2017 National Intelligence Law mandating cooperation with intelligence activities. The case highlights how China\u2019s aggressive tactics have allowed its firms to dominate key industries like electric vehicles and AI, frequently enough through systematic IP theft, causing immense economic damage to the U.S., estimated at hundreds of billions annually. The U.S. has recently also accused Chinese AI companies of industrial-scale model distillation, another form of intellectual property misappropriation. The trial underscores ongoing concerns about China&#8217;s unfair competitive practices and emphasizes the importance for U.S. policymakers to enforce strict measures during upcoming high-level talks with China.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><\/p>\n<div>\n<p>A high-profile criminal <a href=\"https:\/\/www.reuters.com\/legal\/litigation\/us-trial-against-chinas-huawei-opens-with-prosecutor-calling-the-company-2026-09-09\/\" target=\"_blank\" rel=\"noreferrer noopener\">trial<\/a> against Chinese telecom giant Huawei Technologies opened in Brooklyn federal court last week, highlighting China\u2019s state-sponsored intellectual property (IP) theft.<\/p>\n<p>Huawei is one of the largest information technology companies in China and globally, selling products such as smartphones, telecommunications equipment, and AI chips. Its founder, Ren Zhengfei, once served in the People\u2019s Liberation Army, which has led to <a href=\"https:\/\/www.taipeitimes.com\/News\/editorials\/archives\/2019\/07\/02\/2003717952\" target=\"_blank\" rel=\"noreferrer noopener\">close ties<\/a> with the Chinese government and military. A 2012 <a href=\"https:\/\/www.iranwatch.org\/library\/governments\/united-states\/congress\/legislation-reports\/investigative-report-us-national-security-issues-posed-chinese-telecommunications\" target=\"_blank\" rel=\"noreferrer noopener\">report<\/a> from the U.S. House Permanent Select Committee on Intelligence warned that using equipment from Huawei and another Chinese company, ZTE, in U.S. networks could allow Chinese intelligence to spy or disrupt critical communications through hidden bugs or backdoors.<\/p>\n<p>The case now being considered by Judge Ann Donnelly started with a 2018 probe into whether Huawei had breached U.S. sanctions by transporting telecom equipment and carrying out related business via Iran. Meng Wanzhou, Huawei\u2019s chief financial officer and Ren\u2019s daughter, <a href=\"https:\/\/www.cnn.com\/2018\/12\/05\/tech\/huawei-cfo-arrested-canada\/\" target=\"_blank\" rel=\"noreferrer noopener\">was arrested<\/a> in Vancouver on a U.S. warrant and faced extradition to the United States. Chinese intelligence was <a href=\"https:\/\/www.thebureau.news\/p\/beijing-feared-meng-wanzhou-would?utm_source=post-email-title&#038;publication_id=1444443&#038;post_id=215055809&#038;utm_campaign=email-post-title&#038;isFreemail=true&#038;r=2k4yc&#038;triedRedirect=true&#038;utm_medium=email\" target=\"_blank\" rel=\"noreferrer noopener\">reportedly<\/a> ordered to prevent Meng\u2019s extradition for fear she might disclose sensitive information. Shortly after her arrest, China detained the former Canadian diplomat Michael Kovrig and the businessman Michael Spavor on espionage charges.<\/p>\n<p>In 2021, the U.S., Canada, and China reached an agreement under which Meng returned to China on the basis of a deferred-prosecution agreement, and the two Canadians were <a href=\"https:\/\/www.bbc.com\/news\/world-us-canada-58687071\" target=\"_blank\" rel=\"noreferrer noopener\">released<\/a>. In a statement of facts, Meng acknowledged that she had made material misrepresentations to a bank about Huawei\u2019s Iran-connected subsidiary, Skycom; her individual charges were subsequently dropped. In June 2026, Judge Donnelly <a href=\"https:\/\/www.law360.com\/articles\/2469176\" target=\"_blank\" rel=\"noreferrer noopener\">ruled<\/a> that these admissions could be used against the company.<\/p>\n<p>Huawei is now charged in a complaint with <a href=\"https:\/\/asia.nikkei.com\/politics\/international-relations\/us-china-tensions\/china-s-huawei-heads-to-trial-in-us-over-sanctions-and-trade-secrets\" target=\"_blank\" rel=\"noreferrer noopener\">12 counts<\/a>, including racketeering conspiracy, conspiracy to steal trade secrets, and bank and wire fraud for giving false information to banks such as HSBC and Citi about its business in Iran.<\/p>\n<p>On Sept. 9, when giving his opening remarks, DOJ trial attorney Taylor Stout <a href=\"https:\/\/www.reuters.com\/legal\/litigation\/us-trial-against-chinas-huawei-opens-with-prosecutor-calling-the-company-2026-09-09\/\" target=\"_blank\" rel=\"noreferrer noopener\">referred<\/a> to Huawei\u2019s business model as \u201ctheft, lies, cover-up.\u201d He described the company as a criminal enterprise that, between 1999 and 2020 \u2014 that is, over about 20 years \u2014 stole from U.S. companies and misused the U.S. financial system to take control of the telecom industry. Among the companies allegedly affected were Cisco, because its router operating system source code was the target, and T-Mobile. To support his claim, Stout mentioned an instance in which a Huawei employee took photographs inside a T-Mobile robotic device and placed a key component in his backpack.<\/p>\n<p>Brian Heberlig, Huawei\u2019s lawyer, <a href=\"https:\/\/www.reuters.com\/legal\/litigation\/us-trial-against-chinas-huawei-opens-with-prosecutor-calling-the-company-2026-09-09\/\" target=\"_blank\" rel=\"noreferrer noopener\">said<\/a> the case was one of \u201ccompetition, not conspiracy,\u201d and that occasional employee misconduct does not constitute a corporate racketeering scheme. The judge <a href=\"https:\/\/asia.nikkei.com\/politics\/international-relations\/us-china-tensions\/huawei-denies-stealing-secrets-violating-iran-sanctions-as-us-trial-begins\" target=\"_blank\" rel=\"noreferrer noopener\">instructed<\/a> the jury that neither China nor the Communist Party is being tried. That instruction is right for a criminal courtroom, but it does not resolve the broader policy issue since it is <a href=\"https:\/\/www.rubrik.com\/lp\/to-catch-a-thief-podcast?utm_campaign=10759816-MKT%2520%257C%2520China's%2520Global%2520Sharp%2520Power%2520Weekly%2520Alert%2520%257C%25202025&#038;utm_medium=email&#038;_hsmi=354241653&#038;utm_content=354241653&#038;utm_source=hs_email\" target=\"_blank\" rel=\"noreferrer noopener\">well known<\/a> that the main responsibility for China\u2019s IP theft lies with the Chinese Communist Party (CCP).<\/p>\n<p>Chinese laws, such as <a href=\"https:\/\/www.chinalawtranslate.com\/en\/national-intelligence-law-of-the-p-r-c-2017\/\" target=\"_blank\" rel=\"noreferrer noopener\">the 2017 National Intelligence Law<\/a>, allow companies and individuals to be required to assist in intelligence activities. For years, Beijing has combined the acquisition of legitimate technology with acts such as IP theft, forced transfer, and hacking, then passed the stolen IP to certain state-owned enterprises or so-called private Chinese companies, giving them an unfair edge in the global market. The case of Huawei\u2019s growth in wireless equipment is the one most frequently cited. <a href=\"https:\/\/nationalpost.com\/news\/exclusive-did-huawei-bring-down-nortel-corporate-espionage-theft-and-the-parallel-rise-and-fall-of-two-telecom-giants\" target=\"_blank\" rel=\"noreferrer noopener\">Reports<\/a> have long linked Chinese intrusions into Nortel, Canada\u2019s leading telecommunications company, to Huawei\u2019s ability to sell comparable equipment at a lower price as Nortel collapsed.<\/p>\n<p>Huawei\u2019s rapid rise shows how Chinese companies have come to dominate key industries such as electric vehicles and AI chips. While these Chinese companies do innovate, their early success was often supported by a systematic, state-backed campaign of IP theft. By gaining market share through these methods, they could then invest in research and development, creating new products and services that secured their place in the market. <\/p>\n<p>China\u2019s widespread theft of American intellectual property has caused serious economic damage to the United States. A 2017 report by the Commission on the Theft of American Intellectual Property <a href=\"https:\/\/www.nbr.org\/wp-content\/uploads\/pdfs\/publications\/IP_Commission_Report_Update.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">estimated<\/a> that Chinese IP theft costs the U.S. between $225 billion and $600 billion annually, a figure that likely fails to account for undetected theft.<\/p>\n<p>The method now has a new target. Recently, the U.S. government <a href=\"https:\/\/www.reuters.com\/technology\/us-accuses-chinese-ai-firms-industrial-scale-theft-ai-technology-2026-09-08\/\" target=\"_blank\" rel=\"noreferrer noopener\">accused<\/a> six Chinese AI companies, including DeepSeek and Moonshot, of carrying out industrial-scale \u201c<a href=\"https:\/\/www.ft.com\/content\/4ee94860-d8e6-4f99-b59b-899e89ede5d5?syn-25a6b1a6=1\" target=\"_blank\" rel=\"noreferrer noopener\">distillation<\/a>\u201d from U.S. models developed by companies such as Anthropic, OpenAI, Google, and xAI, likely with the Chinese government\u2019s knowledge. Distillation, which involves training smaller AI models on the outputs of more sophisticated ones, is not the same as direct intellectual property theft. Yet it is another way to benefit from someone else\u2019s research without asking for permission or paying adequate compensation.<\/p>\n<p>President Trump is due to meet Xi Jinping later this month. Intellectual-property theft should be high on that agenda. Trump must insist on no further easing of export or investment rules while industrial-scale theft of U.S. models and manufacturing know-how continues. The court can try a company. Only governments can decide whether the system that company grew up in remains cost-free.<\/p>\n<hr>\n<div>\n<p>      Helen Raleigh, CFA, is an American entrepreneur, writer, and speaker. She&#8217;s a senior contributor at The Federalist. Her writings appear in other national media, including The Wall Street Journal and Fox News.  Helen is the author of several books, including &#8220;<a href=\"https:\/\/www.amazon.com\/Confucius-Never-Said-Helen-Raleigh\/dp\/1499185278\/ref=sr_1_1?dchild=1&#038;keywords=Helen+Raleigh+Confucius+Never+Said&#038;qid=1606079469&#038;sr=8-1\">Confucius Never Said<\/a>&#8221; and \u201c<a href=\"https:\/\/www.amazon.com\/Backlash-How-Chinas-Aggression-Backfired\/dp\/1736008501\/ref=tmm_pap_swatch_0?_encoding=UTF8&#038;qid=1606006113&#038;sr=8-1\">Backlash: How Communist China&#8217;s Aggression Has Backfired<\/a>.&#8221; Her latest book is &#8220;<a href=\"https:\/\/www.amazon.com\/Not-Outsiders-Americans-political-activism\/dp\/1736008552\">Not Outsiders: Asian Americans\u2019 political activism from the 19th century to today<\/a>.\u201d Follow her on Twitter: @HRaleighspeaks.<\/p>\n<\/div><\/div>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Huawei trial exposes China&#8217;s IP theft and espionage efforts<\/p>\n","protected":false},"author":536,"featured_media":2660736,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/thefederalist.com\/wp-content\/uploads\/2026\/09\/Huawei-MWC-2015-Barcelona.jpg","fifu_image_alt":"","footnotes":""},"categories":[33651],"tags":[4501,83128,84339,45730,9123],"class_list":["post-2660735","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-western-journal","tag-china","tag-corporate-espionage","tag-cyber-theft","tag-intellectual-property","tag-telecom"],"fifu_image_url":"https:\/\/thefederalist.com\/wp-content\/uploads\/2026\/09\/Huawei-MWC-2015-Barcelona.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2660735","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/536"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2660735"}],"version-history":[{"count":3,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2660735\/revisions"}],"predecessor-version":[{"id":2660739,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2660735\/revisions\/2660739"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2660736"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2660735"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2660735"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2660735"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}