NEW YORK — A long-running criminal case against Huawei Technologies, the world’s largest supplier of wireless network equipment, moves to a jury this week in federal court in Manhattan, where prosecutors allege the Chinese company engaged in a years-long campaign of theft, sanctions evasion and fraud.
Broad indictment alleges extensive misconduct
The indictment, unsealed years after the initial charges, accuses Huawei and some of its subsidiaries of orchestrating a racketeering enterprise that stole technology, plotted to misappropriate U.S. trade secrets and committed wire and bank fraud. Jury selection is scheduled to begin Tuesday.
Among the claims, prosecutors say Huawei used a Hong Kong shell company, Skycom, to sell equipment to Iran in violation of U.S. sanctions and that the company carried out business in North Korea despite prohibitions. The indictment also alleges Huawei installed surveillance equipment that assisted Iranian authorities in monitoring protesters during anti-government demonstrations in 2009.
| Allegation | Specifics |
|---|---|
| Stolen technology | Accused of stealing trade secrets and other proprietary information |
| Sanctions violations | Use of Skycom to sell equipment to Iran; business activity in North Korea |
| Fraud | Wire and bank fraud charges, including allegations against CFO Meng Wanzhou for misleading a bank |
Defense challenges scope and reach of the charges
Huawei has fought to dismiss the case, arguing in court filings that the government’s allegations are vague and that portions are "impermissibly extraterritorial." The company’s lawyers contend some counts do not involve domestic wire or bank fraud required to establish criminal jurisdiction.
The legal battle has stretched back years. The U.S. Justice Department announced criminal charges in early 2019 and has since expanded its allegations. The case also entangles a high-profile extradition and fraud charge against Huawei Chief Financial Officer Meng Wanzhou, who was arrested in Canada in late 2018 on a U.S. extradition request.
National security concerns and global fallout
Huawei is effectively banned from selling equipment to U.S. carriers amid ongoing national security concerns that it could pose a risk to sensitive communications infrastructure. Several Western allies, including Canada and Britain, have also blacklisted the company for use in next-generation wireless networks.
During the administration of former President Donald Trump, the United States stepped up diplomatic pressure on allies to exclude Huawei products from 5G networks amid fears about potential Chinese state influence and espionage. Huawei has denied wrongdoing in many instances.
Beijing rejects U.S. actions
Chinese officials have denounced the U.S. prosecutions as unfair. They have accused the U.S. government of engaging in "economic bullying" and of using national security grounds to "oppress Chinese companies."
"The U.S. government has engaged in ‘economic bullying’ and improperly used national security as a pretext for ‘oppressing Chinese companies,’"
Company’s shifting business amid sanctions
Besides network equipment and consumer electronics such as smartphones, Huawei has moved into chipmaking as demand for advanced processors has grown with the boom in artificial intelligence. But sanctions, export controls and restrictions on access to U.S. technology have curtailed parts of the company’s business and supply chains.
The Manhattan trial will test prosecutors’ ability to prove complex international conduct in a U.S. courtroom and could set a benchmark for how far U.S. criminal law can reach foreign corporate behavior. It also presents a window into U.S. concerns about technology transfer and the intersection of commerce and national security.
What to watch as the trial begins
- Jury selection, which is scheduled to begin Tuesday.
- Whether prosecutors can tie alleged foreign conduct to domestic bank or wire fraud statutes.
- How the court balances defense arguments over extraterritoriality and vagueness.
The trial carries implications beyond Huawei and its corporate fate. A verdict could influence how the United States and other countries regulate foreign technology firms, protect trade secrets and enforce sanctions — matters that will be watched closely in both government and business circles.
Federal prosecutors have broadened the case since 2019 and will present years of investigative work to a New York jury. Huawei, for its part, will continue to challenge the legal foundations of those allegations as the courtroom phase begins.
