In the News: Huawei Lawsuit; 49 New Amendments; and New Product Quality Rules
March 25, 2019 | BY
Marilyn RomeroHuawei Technologies pleads not guilty to defrauding banks in a New York court; China's State Council signs off on amendments to 49 laws; and the State Administration for Market Regulation targets inferior products with new regulations.
Huawei pleads not guilty to U.S. charges
Responding to federal charges that it defrauded at least four banks, Huawei Technologies Co. has pleaded not guilty in a federal court in New York. The company is being charged for allegedly hiding business dealings in Iran, which is in violation of U.S. sanctions. The recent plea made by Huawei, the largest smartphone maker in China, and its U.S. subsidiary signals the beginning of the company's defense in the US case. The company's U.S. legal team includes two former federal prosecutors—Sidley Austin partner Michael Levy and Jenner Block partner David Bitkower—and former Deputy Attorney General James Cole. Meng Wanzhou, Huawei's chief financial officer, who is also charged in the case, was not in court. She currently remains free on bail in Vancouver while she fights extradition to the U.S. She says that the charges against her are politically motivated.
China amends 49 rules to streamline administration, institute reforms
China has amended a total of 49 regulations, according to a State Council decree signed by Premier Li Keqiang. The amendments were made as part of the reforms for party and state institutions adopted by the third plenary session of the 19th Communist Party of China Central Committee; the institutional reform plan of the State Council passed by the first session of the 13th National People's Congress, and related plans to streamline the governance system. The amended rules include those pertaining to the place of origin of import and export goods; social assistance; the national general survey of pollution sources; and the regulation on the implementation of the bidding law, among others.
China plans crack down on inferior products
In an effort to address issues related to product quality, the government of China will soon introduce long-term supervisory measures, according to an official from the national market regulator. Tian Shihong, deputy head of the State Administration for Market Regulation, said that the government will boost its efforts on nationwide supervision and inspection of raw materials, following a planning session held on March 17. The inspections will primarily be geared towards cracking down on inferior quality products as part of a wider push to improve consumer rights. As well as random checks to ensure regulatory efficiency, the administration also intends to increase the frequency of the inspection of companies that have a record of producing products of inferior quality. Companies found violating the rules will face stiff penalties, said Tian.
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