Huawei Executive Accused of Stealing Trade Secrets

01:00 05/25/2019

Huawei has been in deep water and it looks like the water keeps getting deeper.

An executive from the company has been reportedly accused of stealing trade secrets from a microchip company backed by Microsoft MSFT  and Dell.

According to the Wall Street Journal, CNEX, the microchip company backed by Microsoft and Dell, has filed new allegations in a Texas suit that accuses China's Huawei and an executive of trade secrets theft.

CNEX has alleged that Huawei has spent years trying to steal its data storage secrets. The suit is expected to hit trial on June 3rd.

Huawei has countered with its own suit filed earlier this month and claims that CNEX was the company trying to steal trade secrets.

Huawei, which makes computer networking equipment, is now subject to a 'blacklisting' ban by the Trump administration.

Last week President Trump targeted the company with a national emergency declaration and executive order.

Huawei also faces criminal actions , including a federal trade secrets case in the state of Washington and allegations of fraud against its CFO, who is currently awaiting an extradition hearing in Vancouver.

CNEX claims that Huawei deputy chairman, Eric Xu, directed an employee to pose as a potential customer and submit a report on his findings in order to obtain trade secrets for the company's chip research and development department, according to the Journal .

This article has been provided by a Chasing Markets contributor. All content submitted by this author represent their personal opinions, and should be considered as such for entertainment purpose only. All opinions expressed are those of the writer, and may not necessarily represent fact, opinions, or bias of Chasing Markets.
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