Huawei to Stand Trial in the US

A US judge has ruled that Huawei, the Chinese telecommunications company, must stand trial following a 16-count indictment from 2019. The indictment accuses Huawei of attempting to steal trade secrets from its US rivals and selling surveillance equipment to Iran, despite trade sanctions being in place, according to a report by Reuters. A trial is currently scheduled for May 4, 2026.

Background of the Case

US District Judge Ann Donnelly found sufficient evidence in the indictment to refute Huawei’s bid for dismissal. In a 52-page decision, Judge Donnelly, based in Brooklyn, ruled that Huawei’s arguments for dismissal were premature. The indictment alleges that Huawei engaged in racketeering, stole trade secrets from six companies, and committed bank fraud by misleading financial organizations about its work in Iran.

Allegations Regarding Iran

The accusations related to Iran stem from Huawei’s alleged control over a Hong Kong-based company called Skycom, which conducted business in Iran. Judge Donnelly stated that prosecutors successfully alleged that Skycom "operated as Huawei’s Iranian subsidiary and ultimately stood to benefit" from over $100 million in money transfers through the US financial system.

Huawei’s Response

Huawei has pleaded not guilty and sought to dismiss 13 of the 16 counts, referring to itself as "a prosecutorial target in search of a crime." The case dates back to 2019, during President Trump’s first term, and coincided with the Department of Justice launching an investigation into China’s alleged theft of intellectual property.

International Implications

Chinese officials have accused the US government of "economic bullying" and of using national security concerns as a pretext for "oppressing Chinese companies." The company’s CFO, Meng Wanzhou, whose father founded Huawei, was arrested and detained in Canada for three years on allegations that Huawei violated sanctions with Iran. Wanzhou was eventually released, and the charges were dismissed.

Impact on Huawei

The US government began restricting Huawei’s access to American technology in 2019, citing security concerns. The company struggled to maintain its market share with these restrictions in place but has since ramped up its own development of chips and related technologies. Additionally, Huawei shifted its focus to the Chinese market.