Huawei Faces Criminal Trial in U.S. Over Alleged Tech Theft and Sanctions Violations

Brooklyn judge denies motion to dismiss 16-count indictment; trial set for 2026

Chinese telecoms giant Huawei Technologies must face a sweeping criminal trial in the United States over allegations of technology theft, racketeering, and sanctions violations, a U.S. federal judge ruled this week. The decision clears the way for a landmark trial scheduled for May 2026 that could significantly impact U.S.-China tech relations.

U.S. District Judge Ann Donnelly issued a 52-page ruling on Tuesday rejecting Huawei’s motion to dismiss 13 of the 16 charges in a federal indictment filed in the Eastern District of New York. The judge ruled that Huawei’s objections were “premature” and found sufficient evidence to allow the case to proceed, including claims that Huawei engaged in a pattern of racketeering to expand its global reach.

The indictment alleges that Huawei stole trade secrets from six U.S. companies, committed wire and bank fraud, and violated U.S. sanctions by doing business in Iran and North Korea. Prosecutors allege that Huawei concealed its Iran operations by utilizing a shell company, Skycom Tech Co., based in Hong Kong, to facilitate over $100 million in transactions through the U.S. financial system. This arrangement misled major banks, including HSBC.

Huawei has pleaded not guilty, arguing that the charges are vague and claiming the prosecution is politically motivated. The company, which has long denied any wrongdoing, argued that much of the case is based on actions that occurred outside U.S. jurisdiction and thus should not fall under U.S. criminal law.

The criminal case, launched in 2018 during the Trump administration under the now-defunct “China Initiative,” has been a flashpoint in the rising tensions between the U.S. and China. One of its highest-profile moments was the 2018 arrest of Huawei’s CFO, Meng Wanzhou—daughter of the company’s founder, Ren Zhengfei—in Canada on a U.S. extradition request. Meng was detained for nearly three years before being released and returning to China in 2021 as part of a diplomatic resolution. Charges against her were dropped in 2022.

Since 2019, the U.S. government has blacklisted Huawei from key American technologies, citing national security risks. The company has since struggled to maintain its global market share amid bans and sanctions that have cut it off from advanced U.S. semiconductors and software.

In response, Huawei has doubled down on developing its own chips and pivoted toward the Chinese domestic market, as well as industrial sectors like smart healthcare and manufacturing infrastructure—areas less vulnerable to sanctions.

Tuesday’s ruling is a significant legal blow for the company. A conviction could result in heavy fines, further restrictions, or a broader clampdown on Huawei’s U.S. operations, even as the company insists it poses no security threat.

The case is U.S. v. Huawei Technologies Co et al, U.S. District Court, Eastern District of New York, No. 18-cr-00457. Neither Huawei nor its legal team has commented on the ruling. The U.S. Attorney’s Office in Brooklyn also declined to comment.

With over 208,000 employees and operations in more than 170 countries, Huawei remains one of the world’s largest providers of telecommunications equipment. But in the United States, its legal troubles are far from over.