Huawei accused of stealing robotic arm from T-Mobile in slew of charges

US government reveals charges against Chinese vendor including money laundering, obstruction of justice and theft of trade secrets

The US Department of Justice (DoJ) has filed multiple charges against Huawei including theft of trade secrets, money laundering and obstruction of justice.

Huawei CFO Wenzhou Meng has also been charged with bank fraud and wire fraud.

Some of the charges against Huawei relate to an alleged theft of a robotic phone-testing system in 2012 belonging to T-Mobile USA, named Tappy, while also claiming that the vendor offered bonuses to employees who stole confidential information.

Tappy - which includes software and a robotic arm - was built by T-Mobile to test mobile phones before they are sold to customers.

According to a court document, Huawei employees were granted access to Tappy as part of a partnership between the two companies, but T-Mobile refused to allow Huawei to replicate the device in its own facilities.

Huawei then instructed employees to send information and photos back to China so the vendor could create its own alternative.

The report also claims that staff with access to Tappy sneaked colleagues from China into the facility, before stealing one of the robotic arms - only returning it after T-Mobile noticed it was missing.

Huawei claims that the employees in question acted without being instructed by the vendor, adding that the trade secret charges have already been the subject of a civil lawsuit, which was settled.

A video of Tappy can be seen here.

The DoJ also confirmed a string of other allegations against Huawei.

Acting attorney general Matthew Whitaker said: "Today we are announcing that we are bringing criminal charges against telecommunications giant Huawei and its associates for nearly two dozen alleged crimes.

"As I told Chinese officials in August, China must hold its citizens and Chinese companies accountable for complying with the law."

Huawei denied committing any of the crimes, saying it is "disappointed to learn of the charges brought against the company today", while also claiming to have no knowledge of any crimes committed by its CFO.

Documents published by the DoJ confirmed long-standing rumours that Meng had been arrested in Canada on suspicion of breaching US sanctions on Iran.

Chinese ministry spokesperson Geng Shaung said China will defend its enterprise.

In a statement to AFP he said: "We strongly urge the US to stop the unreasonable suppression of Chinese companies including Huawei and to treat them fairly and objectively.

"China will also resolutely defend the legitimate rights and interests of Chinese enterprises."