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Monday, January 28, 2019

China says US indictment against Huawei is 'unfair' and 'immoral'

A spokesman at China's industry and information technology ministry said Tuesday that the U.S. government indictment against Huawei is "unfair" and "immoral," Reuters reported.

The U.S. Department of Justice filed criminal charges Monday against Meng Wanzhou, the chief financial officer of China tech giant Huawei and the daughter of its founder and president Ren Zhengfei. Acting Attorney General Matthew Whitaker confirmed during a press conference that the Justice Department is seeking the extradition of Meng Wanzhou from Canada.

The Justice Department also announced charges Monday against Huawei for allegedly stealing trade secrets from T-Mobile. The charges stem from a civil trade secrets lawsuit filed by T-Mobile in 2014 over a robot called "Tappy," which was used in testing smartphones.

China's foreign ministry, for its part, expressed its concerns about the charges and then characterized the actions as part of a U.S. plot to suppress the success of Chinese firms.

Alex Capri, visiting senior fellow at NUS Business School, told CNBC he found Beijing's response notable.

"I think the choice of words is very interesting from Beijing because I didn't hear any talk about retaliation, I didn't hear any talk similar to what we heard regarding Canada, where 5G networks might be held up, Huawei's involvement in building these types of networks, you know, as a penalty might withdraw," Capri said, referring to the next generation of mobile networking technology.

"What that does is that underscores the reality here, and that is that Huawei is incredibly vulnerable," he said, explaining that vulnerability stems from the company's "dependence still on Western tech."

That's why, Capri added, "Beijing is treading very carefully here."

—CNBC's Kate Fazzini and Eustance Huang, and Reuters contributed to this report.

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