Executive at Huawei is Accused of Stealing Trade Secrets

A Huawei executive has been reportedly accused of stealing trade secrets from a microchip company backed by Microsoft 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-based 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 June 3rd.

Huawei isn’t taking things sitting down though and has countered with its own suit filed earlier this month. The company 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.

The company 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 .

US officials announced recently that they would temporarily ease a ban that made it difficult for American companies to do business with Huawei.