It can weather fines, but lost trust could mean lost billions.
After years of public mistrust, the US government has finally, officially laid out its cases against tech giant Huawei. The Chinese company stands accused of a laundry list crimes ranging from wire fraud to trade-secret theft to violating Iranian sanctions to obstruction of justice — all told, we’re looking at 23 charges across two states. (Naturally, the company denies allegations of wrongdoing.) And now that the US government has made its claims against Huawei we’re left with one weighty question: Just how screwed is this company, exactly?
Well, it really depends on your definition of “screwed.” No matter how hard a stance the US takes against Huawei, it’s hard to imagine a scenario in which the world’s second-largest smartphone maker goes out of business entirely. Its dominant position in China (not to mention its close ties to the state) makes sure of that. Should US courts ultimately find Huawei guilty of all these charges, the company stands to get slapped with a few fines, at the very least. But considering just how patently unethical Huawei looks, money isn’t the only thing it stands to lose — international trust in the company is eroding already. Read more at Engadget