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Visitors pass in front of the Huawei's stand on the first day of the Mobile World Congress in Barcelonaon on February 27, 2017 in Barcelona.

Lluis Gene | AFP | Getty Images

Visitors pass in front of the Huawei’s stand on the first day of the Mobile World Congress in Barcelonaon on February 27, 2017 in Barcelona.

The FBI raided a Huawei lab in San Diego and set up a sting operation at CES in Las Vegas in January as part of a third investigation into the smartphone maker, according to a new report by Bloomberg Businessweek.

Last week, the U.S. Department of Justice charged Huawei and its chief financial officer, Meng Wanzhou, with an alleged violation of sanctions against Iran. It also charged Huawei for allegedly stealing trade secrets from T-Mobile. The newly reported third investigation similarly deals with trade secrets, but carries the added weight of federal regulations around technologies with the potential for use in defense.

It also sheds light on how far Huawei is willing to go for a competitive edge, and on the extent of FBI fact-finding operations involved in these investigations.

The Businessweek report says executives for an electronics components company, Akhan Semiconductor, aided an FBI investigation into whether Huawei attempted to steal Akhan’s smartphone glass technology that it says is resistant to scratches and is practically unbreakable. The Akahn glass, called Miraj, features a layer of artificial diamond that could also hold implications for defense technology.

The executives were briefed on the lab raid, which took place last week, and wore wires to a meeting with Huawei executives during the annual CES convention last month, according to the Businessweek report. A Businessweek reporter witnessed the sting in a hamburger restaurant in a Las Vegas casino.

Representatives for Huawei, the FBI and Akhan did not immediately return request for comment.

Read the full report at Bloomberg Businessweek.

WATCH: DOJ charges Huawei with fraud, seeks extradition of CFO

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Hong Kong airline Cathay Pacific stock moves after recent tumble

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A view from a Cathy Pacific Jet which see another Cathay Pacific Jet Park in Hong Kong International Airport in Hong Kong, China. 23 May 2019

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Shares of Hong Kong airline Cathay Pacific rebounded in Wednesday morning trade.

Still, “much uncertainty” remains ahead in the market, according to Luya You, analyst for transportation research at Bocom International.

“We believe … the most prudent way to treat the stock right now is to downgrade to neutral,” You — who disclosed ownership in Cathay Pacific stock — told CNBC’s “Squawk Box” on Wednesday. “It’s very, very hard for us to know what’s going to happen in the next upcoming days or even upcoming weeks simply because right now Cathay Pacific is unfortunately stuck in a very, very, very tough place.”

Shares of Cathay Pacific jumped more than 2.5% in morning trade on Wednesday.

Right now Cathay Pacific is unfortunately stuck in a very, very, very tough place

Luya You

Analyst for transportation research at Bocom International

Cathay in the spotlight amid protests

You’s comments came as Hong Kong continues to be rocked by protests that have lasted for weeks and have seen outbursts of violence. Recent rounds have left operations at the city’s airport disrupted for two days.

For its part, Cathay Pacific has come under increased scrutiny from Beijing, with the Chinese aviation regulatory body issuing a “major aviation safety risk warning” to the airline last week. The Civil Aviation Authority said that “on multiple occasions,” Cathay’s flight personnel have participated in “violent assault,” according to CNBC’s translation.

“The incidents pose a serious threat to aviation safety, causing adverse social impact and as a result is increasing inbound aviation safety threats from Hong Kong to the mainland,” it said.

It also ordered the carrier to provide identification information for its crew on mainland-bound flights, and said that crew members that do not receive the authority’s approval won’t be allowed into its airspace, including on flights bound for other destinations.

Asked if other airlines could benefit from the misfortunes of Cathay Pacific, You said it was possible but “it’s a little bit too early” at the moment, as the Chinese aviation authority was “still waiting” to see the carrier’s response.

“If things do significantly … deteriorate then potentially yes, you know, the other airlines such as Air China, China Southern, even foreign airlines at Hong Kong International Airport could benefit from any displaced demand that goes from Cathay to anywhere else,” she said.

‘Very critical period’

Looking ahead, You said it was “very hard to say” how Cathay Pacific was likely to respond further to the current situation.

“Everybody’s waiting to see their official response,” You said. “They’ve already issued their verbal response, their verbal agreement to China’s new standards but we’ve yet to see really a lot of mass actions.” She added that it is a “very critical period” for Cathay Pacific as investors wait to see if China “agrees” that the firm has taken sufficient measures.

If Beijing disagrees, then there could be more restrictions for Cathay Pacific, she said, adding that it would be “absolutely catastrophic” for the airline if it were to lose certain access or a “very, very large part of their market.”

So far, Cathay Pacific has suspended two pilots, fired two ground staff and issued a warning email to its employees. The airline’s top shareholder and manager, Swire Pacific, has also voiced support for China and vowed to follow China’s aviation regulations.

— Reuters and CNBC’s Grace Shao contributed to this report.

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Chinese state media urge action, voice support for Hong Kong police

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Protesters occupy the departure hall of the Hong Kong International Airport during a demonstration on August 12 in Hong Kong.

Anthony Kwan | Getty Images

Chinese state media called on Beijing on Wednesday to deal with protests in Hong Kong more decisively after a reporter from one of China’s largest government-backed newspapers was caught up in overnight clashes.

Ten weeks of increasingly violent clashes between police and pro-democracy protesters, angered by a perceived erosion of freedoms, are posing one of the biggest challenges for Chinese President Xi Jinping since he came to power in 2012.

Demonstrators and riot police clashed at Hong Kong’s airport late on Tuesday after flights were cancelled for a second day. Protesters at one point held a man who Chinese media have said was a reporter from China’s Global Times newspaper.

A front-page commentary on the overseas edition of the Communist Party’s official People’s Daily newspaper said on Wednesday Hong Kong had reached a critical juncture.

“Using the sword of the law to stop violence and restore order is overwhelmingly the most important and urgent task for Hong Kong!” it said.

Another commentary by a Shenzhen University researcher, published by the China Daily, said the central government should deal with Hong Kong issues more decisively.

U.S. President Donald Trump said on Twitter overnight the Chinese government was moving troops to the border with Hong Kong and urged calm.

However, Chinese state media has stopped short of calling for military action to deal with the protests.

Demonstrators say they are fighting the erosion of the “one country, two systems” arrangement that enshrined some autonomy for Hong Kong after China took it back from Britain in 1997.

“Extreme political ideas have found frequent expression in Hong Kong, with some even raising ‘Hong Kong independence’ slogans recently. Which means the ‘one country, two systems’ principle faces a new challenge,” Chinese author Li Peiwen said.

Chinese state media has also posted messages of support for the Hong Kong police, describing what was happening in the city as “a shame”. Such posts were the most-discussed topics on China’s social media platforms on Wednesday.

“We support the Hong Kong police too!” said a post on the People’s Daily’s official Twitter-like Weibo account that was reposted more than 500,000 times.

Global Times editor Hu Xijin said one of the newspaper’s reporters was rescued by police after being tied up by demonstrators. The tabloid is published by the People’s Daily.

“GT reporter Fu Guohao has been rescued by police and sent to the hospital. We’re still learning about his injury conditions,” said in a tweet.

Chinese state broadcaster CCTV called Fu “a real man” in a another Weibo post that had more than 140,000 “likes.”

Netizens have been closely watching what Beijing might do next after China this week condemned some protesters for using dangerous tools to attack police and said the clashes showed “sprouts of terrorism.”

The Global Times reported on Monday that China’s People’s Armed Police assembled in the southeastern city of Shenzhen, fueling speculation of a possible intervention in Hong Kong.

Some reactions on China’s social media platforms called for Beijing to intervene while many others urged calm.

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Amazon says its facial recognition can now identify fear

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Amazon said this week its facial recognition software can detect a person’s fear.

Rekognition is one of many Amazon Web Services (AWS) cloud services available for developers. It can be used for facial analysis or sentiment analysis, which identifies different expressions and predicts emotions from images of people’s faces. The service uses artificial intelligence to “learn” from the reams of data it processes.

The tech giant revealed updates to the controversial tool on Monday that include improving the accuracy and functionality of its face analysis features such as identifying gender, emotions and age range.

“With this release, we have further improved the accuracy of gender identification,” Amazon said in a blog post. “In addition, we have improved accuracy for emotion detection (for all 7 emotions: ‘Happy’, ‘Sad’, ‘Angry’, ‘Surprised’, ‘Disgusted’, ‘Calm’ and ‘Confused’) and added a new emotion: ‘Fear.'”

Artificial intelligence researchers have invested plenty of resources to try and read a person’s emotions by analyzing their facial features, movements, voice and more. Some tech companies involved in the space include Microsoft, Affectiva and Kairos.

But some experts have pointed out that, while there is scientific evidence suggesting there are correlations between facial expressions and emotions, the way people communicate major emotions varies across cultures and situations. Sometimes, similar types of facial movements can express more than one category of emotions, and so researchers have warned “it is not possible to confidently infer happiness from a smile, anger from a scowl, or sadness from a frown, as much of current technology tries to do when applying what are mistakenly believed to be scientific facts.”

The availability of facial recognition technology has also raised concerns about its potential use in surveillance and for the possibility that it could intrude on privacy.

For its part, Rekognition has been the subject of controversy for its use by law enforcement agencies and a reported sales pitch to Immigration and Customs Enforcement in the U.S. Still, AWS has said the technology is used by organizations that work with law enforcement to advocate for victims of crime.

CNBC’s Kate Fazzini contributed to this report.

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