- A U.S. federal judge denied Huawei's motion to dismiss a 16-count indictment, allowing the case to proceed to trial on May 4, 2026. Charges include racketeering, trade secret theft and bank fraud.
- Prosecutors claim Huawei used a front company, Skycom, to conduct illegal business in Iran, violated U.S. sanctions and misled banks to process over $100 million in illicit transactions.
- The indictment accuses Huawei of orchestrating a racketeering scheme to steal proprietary technology from six U.S. companies, aiding its global expansion at the expense of U.S. law and national security.
- The company argues the case relies on flawed legal theories, including the discredited "right to control" fraud theory, and frames the prosecution as politically motivated under the former "China Initiative."
- The case underscores ongoing U.S.-China tensions over tech and security. Huawei, which operates globally and is growing in AI and chip development, denies all wrongdoing and says the charges lack jurisdiction.
Chinese tech giant Huawei Technologies will face trial in the United States on a sweeping 16-count federal indictment after a judge denied its motion to dismiss a long-standing criminal case against it.
On Tuesday, July 1, U.S. District Judge Ann Donnelly of the Eastern District of New York ruled that prosecutors had presented enough evidence to proceed with the case. The ruling set the stage for a high-profile trial scheduled to begin on May 4, 2026.
The charges – which include racketeering, theft of trade secrets and bank fraud – stem from a years-long investigation into Huawei's global business practices. Prosecutors allege the company, which has close ties to the Chinese Communist Party, engaged in a pattern of corporate espionage and illegal financial activity designed to expand its global footprint at the expense of American firms and U.S. law.
At the heart of the indictment is the allegation that Huawei used a Hong Kong-based front company, Skycom, to conduct business in Iran in violation of U.S. sanctions. According to federal prosecutors, Huawei misled banks to facilitate over $100 million in illicit transactions connected to this activity.
In addition, the U.S. government claimed Huawei orchestrated a racketeering scheme to steal proprietary technology from six U.S. companies – including trade secrets vital to telecommunications infrastructure and consumer electronics. (Related: Huawei founder accuses U.S. of exaggerating company's technological strength.)
The trial is expected to last several months. It will also likely further inflame Beijing-Washington tensions, particularly in areas of technology, trade and national security.
Huawei cries lawfare, cites flawed legal theories and political targeting
Huawei, headquartered in Shenzhen, China, employs over 200,000 people and operates in more than 170 countries. While widely known for its smartphones and telecommunications equipment, the company is increasingly positioning itself as a key player in artificial intelligence and semiconductor development.
Washington has long accused Huawei of acting as a conduit for Chinese state surveillance. The U.S. government began imposing restrictions on Huawei in 2019, cutting off its access to critical American technologies and placing it on a trade blacklist, citing concerns over national security and the potential for foreign espionage.
However, Huawei has denied any wrongdoing.
In a previous court filing in November 2024, the company pleaded not guilty and described itself as "a prosecutorial target in search of a crime." At that time, the U.S. accused Huawei of stealing its trade secrets and misleading banks about its dealings in Iran.
But Huawei argued that many of the allegations fall outside U.S. jurisdiction. The company also accused the U.S. Department of Justice of pursuing the case under the now-defunct "China Initiative," which it described as "ill-founded" and biased against Chinese individuals and entities.
Huawei also targeted the government's use of the "right to control" theory of fraud, which asserts that banks were misled and thus deprived of essential information to make informed decisions. That theory, Huawei noted, was rejected by the U.S. Supreme Court in 2023 in an unrelated case, potentially undermining key aspects of the bank fraud charges.
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