Core Viewpoint - The Shanghai Third Intermediate People's Court has sentenced 14 former employees of a company for infringing Huawei's trade secrets, with significant prison terms and fines imposed on key individuals involved in the case [1][3]. Group 1: Legal Proceedings - On July 28, the court ruled that Zhang was sentenced to 6 years in prison and fined 3 million RMB for trade secret infringement [1] - Zhou received a 5-year prison sentence and a fine of 1.2 million RMB, while Liu was sentenced to 4 years and 6 months with a fine of 1.5 million RMB [1][5] - The total fines imposed on the defendants amounted to 13.5 million RMB [1] Group 2: Background of the Case - The case involved a group of former executives from a rights company who, after leaving, established a new tech company and lured former employees to join them, using high salaries and equity incentives [3] - The group illegally obtained trade secret information related to chip technology by instructing former employees to copy and screenshot sensitive data before their departure [3] - An evaluation revealed that the infringing chip technology had over 90% similarity to the original company's trade secrets, indicating substantial similarity [3] Group 3: Company Involvement - The company involved in the infringement case is identified as Zunpai Communications Technology (Nanjing) Co., Ltd., which has received investments from companies like Changqu Technology and Xiaomi Group [4]

Core Viewpoint - The article discusses a court ruling regarding the infringement of Huawei's trade secrets by Zunpai Communications Technology (Nanjing) Co., Ltd., resulting in significant penalties for former employees involved in the case [1][2]. Summary by Sections Legal Proceedings - On July 28, 2025, the Shanghai Third Intermediate People's Court sentenced 14 former employees of Huawei for infringing on trade secrets, with total fines amounting to 13.5 million yuan [1]. - The main defendant, Zhang, received a 6-year prison sentence and a fine of 3 million yuan, while the other 13 defendants received sentences ranging from 2 to 5 years and fines between 200,000 to 1.5 million yuan [1]. Company Background - Zunpai Communications Technology (Nanjing) Co., Ltd. was established in 2021 with a registered capital of approximately 3.3 million yuan, previously known as Shanghai Zunpai Communications Technology Co., Ltd. The company specializes in professional design services, integrated circuit sales, and retail of computer software and hardware [1]. Incident Details - In February 2021, former executives of a rights company, including Zhang and Liu, established a technology company and lured several R&D personnel from the rights company to join them, illegally obtaining chip technology information through methods like note-taking and screenshots [2]. - The infringement was confirmed to be substantially similar to the rights company's technology, leading to significant losses for the rights company [2]. Company Policy - Huawei emphasizes the protection of its intellectual property and trade secrets, prohibiting employees from improperly obtaining, disclosing, or using others' trade secrets [2].

Core Points - The Shanghai Third Intermediate People's Court ruled in favor of Huawei in a case against Zunpai for infringing on Huawei's trade secrets, resulting in prison sentences for 14 former employees of the company, with a total fine of 13.5 million RMB [1][6] - The lead defendant, Zhang, received a 6-year prison sentence and a fine of 3 million RMB, while the other defendants received sentences ranging from 1 year to 5 years [6][8] - The court also approved a pre-litigation asset preservation request from Huawei's subsidiary, Shanghai HiSilicon, to freeze 95 million RMB in bank deposits from Zunpai and its subsidiaries [3][4] Company Background - Zunpai Communications, established for just over a year, has raised over 300 million RMB in total financing, including a Pre-A round led by notable investors such as Xiaomi Group and various venture capital firms [4] - The company previously secured nearly 100 million RMB in angel round financing in May 2021 [4] Legal Context - The case involved allegations that former executives of a rights company, including Zhang and Liu, induced former R&D personnel to join their new company and illegally obtained trade secrets related to chip technology [5][8] - The court found that the infringing chip technology had over 90% similarity to the trade secrets of the rights company, leading to significant losses for the original company [8] Xiaomi's Position - Xiaomi Group issued a statement clarifying its role as a financial investor in Zunpai, emphasizing that it does not manage or operate the company and has no involvement in any intellectual property or technology collaboration [10][11] - Xiaomi highlighted that it is one of many investors and not the largest or leading investor in Zunpai [10][11]

Group 1 - Trump's recent announcement of imposing tariffs ranging from 25% to 40% on 14 countries, including Japan and South Korea, starting August 1, has escalated global trade tensions [1][5][7] - The underlying motive behind Trump's tariff policy appears to be aimed at pressuring China by constricting trade opportunities for its neighboring countries, which are significant for China's export costs and supply chain efficiency [5][20] - The U.S. economy is facing challenges, with the first quarter GDP showing contraction and predictions for the second quarter being pessimistic, indicating a potential technical recession [7][20] Group 2 - U.S. Treasury Secretary Bessent's unexpected friendly overtures towards China, emphasizing mutual respect and cooperation, suggest underlying anxieties within the U.S. administration [11][13] - The U.S. has been attempting to exert pressure on China regarding rare earth resources, but China's strengthened export controls have enhanced its leverage in the global rare earth market [13][16] - China's response to U.S. pressures has been measured, maintaining control over rare earth resources while allowing some U.S. companies access to its market, showcasing its confidence and patience [16][22] Group 3 - The ongoing trade rivalry between the U.S. and China is far from over, with rare earth issues likely to remain a central topic in negotiations, where China's control gives it a favorable position [20][22] - The potential rifts in U.S. relations with traditional allies may provide China with more diplomatic space, as countries like Japan and South Korea might seek a balanced approach with China amid economic pressures [22]