How the US Revealed a Chinese Bribery Case Related to Huawei?

The US Department of Justice unveiled what it described as a major espionage operation that the Chinese government tried to carry out through 13 people, including 10 working directly for the Chinese intelligence service.

The operation included smuggling people and equipment from US institutions, as well as intervening with the aim of "undermining the rule of law" in the United States.

US Attorney General Merrick Garland held a press conference with FBI Director Christopher Wray and prosecutors from New York and New Jersey states.

Media reports said some of the charges related to "Chinese citizens" who tried to "recruit US citizens" to work for Chinese intelligence, including an attempt to obstruct an ongoing trial against Chinese telecommunications company Huawei as part of a broader crackdown on what they described as "efforts to exert illegal influence in the United States."

 

Criminal Charges

Chinese citizens Guochun He and Zheng Wang were charged with criminal charges in a criminal complaint dated October 20, details of which were made public last week.

Court documents did not name the company, but a person familiar with the investigation told Reuters they were "trying to interfere in (Huawei's) trial."

In February 2020, the US Department of Justice announced that Huawei was facing an indictment for violating the Corrupt Organizations Act.

The ministry has issued arrest warrants for the two men, but it is not clear whether they were arrested, and Garland said that "the Justice Department will not tolerate attempts by any foreign power to undermine the rule of law on which our democracy is based."

 

Plotted Crime

Starting in 2017, the two alleged spies had begun contacting an employee of a US law enforcement agency in order to extract information from the individual regarding evidence, witnesses, and potential charges in a criminal case against Huawei.

In exchange for US prosecutors' confidential documents about the case, the US government employee was paid tens of thousands of dollars in Bitcoin.

In total, $61,000 was paid by the spies, with the most recent transaction occurring just this month.

What the spies did not know, however, was that their contact was actually working as a double agent the whole time under the FBI's supervision. 

Perhaps in an attempt to show how serious the US is taking this issue, last week's press conference included the biggest names within the Department of Justice, such as US Attorney General Merrick Garland and Deputy Attorney General Lisa Monaco, as well as FBI Director Christopher Wray.

The press conference was billed to be about a "significant national security matter" before the details were released.

According to US Attorney General Merrick Garland, these two people, among others, have tried to attract dissidents within the United States and pressure American academics and scientists to work with them in this regard.

Garland said the cases showed that China "has sought to interfere with the rights and freedoms of individuals in the United States and undermine our judicial system that protects those rights."

In the case of "involvement in bribery to a government employee," the US attorney general explained: "This was a heinous attempt by China's intelligence officers to protect a company based in the People's Republic of China from accountability and undermine the integrity of our judicial system."

 

Several Accusations

Among the cases listed by Garland are those of seven Chinese accused of trying to force a US-based citizen to return to China as part of a Beijing-led forcible return campaign.

In a second case, two suspected members of Chinese intelligence were charged with trying to obstruct prosecutions in the United States against Chinese telecommunications giant Huawei.

In the third case, four Chinese nationals were charged "in connection with a long-term intelligence campaign, targeting persons in the United States to work for the People's Republic of China."

The announcement of the cases comes a day after Chinese President Xi Jinping won a third term as the head of the Chinese Communist Party and the country.

For its part, the Chinese embassy in Washington did not provide any comment on the US accusations, and Huawei has remained silent the same.

This time, however, Beijing's response came from its foreign ministry spokesman, Wang Wenbin, who denied being aware of the details of the case.

During a press conference, Wenbin added that his country "has always urged expatriate Chinese citizens to comply with the laws and regulations of host countries," referring to accusations made against citizens as "stemming from the Cold War mentality" and "based on flimsy foundations."

In turn, the Chinese official accused the United States of seeking to "suppress Chinese companies, provide public shelter to Chinese fugitives, and obstruct and undermine China's efforts to repatriate fugitives and recover illegal revenues."

He described these actions as "turning the United States into a safe haven for corrupt individuals and lawbreakers and placing the United States on the wrong side of justice and the rule of law."

Huawei was accused in 2018 of misleading HSBC and other banks about its business in Iran, which is under US sanctions.

In 2020, other charges were added to the case, including conspiracy to steal trade secrets from six US tech companies and helping Iran track down protesters during anti-government demonstrations in 2009. The company has pleaded not guilty.

Since 2019, China's Huawei has been facing widespread pressure from the US government to curb its technological development and fierce competition with domestic manufacturers.

The company was blacklisted to prevent it from acquiring basic US technologies for its phones.

Under these US sanctions, suppliers who use any US technology to make components for Huawei must first obtain Washington's approval, which has, in fact, led to a halt in the supply of many key parts.