U.S. intelligence says Huawei funded by the Chinese national security: report

(Reuters) – the U.S. intelligence service has accused Huawei Technologies to be financed by the Chinese state security, The Times said on Saturday, adding to the list of accusations facing the Chinese technology company in the West.

A Huawei logo is pictured during the media day of the Shanghai auto show in Shanghai, China, April 16, 2019. REUTERS/Aly Song

The CIA accused Huawei of receiving funding from China’s National Safety, the 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, the AMERICAN intelligence shared its progress with the other members of the Five Eyes intelligence-sharing of the group, including Britain, Australia, Canada and New Zealand, according to the report

Huawei rejected the accusations in a statement, quoted by the newspaper.

“Huawei does not comment on unsubstantiated claims backed up by zero evidence from anonymous sources,” a Huawei representative told The Times.

The company, the CIA and the Chinese state security services do not respond immediately to requests for comment.

The accusation comes at a time of trade tensions between Washington and Beijing and in the midst of the worries in the United States that Huawei equipment could be used for espionage. The company has said that the objections are unfounded.

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

Meng Wanzhou, Huawei’s chief financial officer and daughter of 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.

She denies wrongdoing and her father has previously said that the arrest was “politically motivated”.

In the midst of these charges, top educational institutions in the West have recently broken ties with Huawei in order to prevent the loss of federal funding.

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

U.S. sanctions forced ZTE to stop most of its activities between April and July last year after the Commerce Department officials said that 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 week that the United States will press its allies at a meeting in Prague next month to establish shared security and policy measures that will make it more difficult for Huawei to dominate 5G telecommunication networks.

Reporting by Kanishka Singh in Bengaluru; Editing by Nick Macfie

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