Tech giant Huawei escalates trade tensions between US-China

The department of justice of US has filed a series of criminal charges against Chinese tech giant Huawei and its subsidiaries on violating US sanctions on Iran. The company’s CFO(Chief Financial Executive) and the owner’s daughter Meng Wanzhou who has very close ties with the Chinese government has been accused of misleading bank accounts about the company’s business. 

The department of justice has also charged a separate indictment on the company of stealing trade secrets from T- Mobile. This moves comes when both US and China have been trying to sort out the ongoing trade war. And Weng’s arrest is likely to increase tensions between the two countries. 

In a statement to the media on Tuesday, Huawei has denied the charges. The company said that it is not aware of “any wrongdoings by MS Meng and believes that US wll ultimately reach to the same conclusion.”

Meng has also denied all the charges against her. Chinese foreign ministry has declared ‘political manipulations’ behind the US government’s case against Huawei.  

"For some time, the US has used state power to discredit and crack down on specific Chinese companies in an attempt to strangle the enterprises' legitimate and legal operations," the ministry said in a statement on Tuesday.

Einar Tangen, a political analyst and an investment banker who advises the Chinese government on economic and development issues has called this move a tactical ploy by US President Donald Trump amid the on going trade war between the two countries. 

"From Donald Trump's point of view, it makes good tactics to try to put your opponent off. Unfortunately for him, China was kind of expecting this - they are still not happy about it but in the end this is just political theatre," Tangen told Al Jazeera from Beijing, warning however that US move could cause a backlash in China itself.

"Huawei is massively popular, they have overtaken the crown as the number one provider of cellphones in China, and Chinese consumers might react to this by saying, 'well, if they are going to attack our companies, we will stop buying American goods'." He said which could further escalate the tensions between the two countries. 

 

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