A US judge on Tuesday declined to dismiss key charges in a federal case against Huawei Technologies, dealing a setback to the Chinese telecom giant. The indictment accuses Huawei of attempting to steal trade secrets from American competitors and of misleading banks about its business dealings in Iran.
In a 52-page decision, US District Judge Ann Donnelly in Brooklyn found sufficient allegations in the 16-count indictment that Huawei engaged in racketeering to expand its brand, stole trade secrets from six companies, and committed bank fraud.
The Iran accusations stemmed from Huawei’s alleged control of Skycom, a Hong Kong company that did business in that country.
Huawei Pleads Not Guilty
Donnelly said prosecutors satisfactorily alleged Skycom “operated as Huawei’s Iranian subsidiary and ultimately stood to benefit, in a roundabout way”, from more than $100 million of money transfers through the US financial system.
Huawei has pleaded not guilty and had sought to dismiss 13 of the 16 counts, calling itself “a prosecutorial target in search of a crime”.
A trial is scheduled for May 4, 2026, and could last several months.
Neither Huawei nor its lawyers immediately responded to requests for comment. A spokesperson for Interim US Attorney Joseph Nocella in Brooklyn declined to comment.
7-Year-Old Case
The criminal case began during US President Donald Trump’s first term in 2018, the same year the Department of Justice launched its China Initiative to address Beijing’s alleged theft of intellectual property.
Huawei Chief Financial Officer Meng Wanzhou, whose father founded the company, had been a defendant, and was detained in Canada for nearly three years before being allowed to return to China. Charges against her were dismissed in 2022.
In 2022, President Joe Biden’s administration scrapped the China Initiative, after critics said it amounted to racial profiling and caused fear that chilled scientific research.
National Security Concern
Based in Shenzhen, Huawei operates in more than 170 countries and has about 208,000 employees.
The US government has restricted Huawei’s access to American technology since 2019, citing national security concerns. Huawei denies it is a threat.
The case is US v. Huawei Technologies Co et al, US District Court, Eastern District of New York, No. 18-cr-00457.
(With inputs from Reuters)
