Huawei Goes on Trial in US Over Iran Business Deals After Eight-Year Legal Battle
Thestandard · 2 SOURCESabout 1 hour ago3 MIN
Summary
Chinese tech giant Huawei Technologies went on trial on Tuesday in Brooklyn, New York, on criminal charges after eight years of legal wrangling with the US government. The Shenzhen-based company has pleaded not guilty to all 14 counts, including bank fraud, wire fraud, trade secret theft, and racketeering, with alleged criminal activity dating back to 1999. Jury selection began on Tuesday before US District Judge Ann M. Donnelly of the Eastern District of New York. Federal prosecutors allege Huawei carried out a decades-long racketeering scheme to grow its worldwide business through intellectual property theft, violations of US sanctions on Iran, and deception of major banks about its Iran ties. The trial is expected to last about three months and will overlap with Chinese President Xi Jinping's September 24 meeting with President Donald Trump in Washington. Huawei said in a statement that the US government's "overarching narrative is demonstrably false" and that the company achieved its recent successes, including US$126 billion in global sales revenue last year, through its own research and development.
Key Points
- Jury selection began Tuesday in federal court in Brooklyn, New York, before US District Judge Ann Donnelly, with potential jurors completing 27-page questionnaires including questions about their views on China and Iran
- The 14 charges include bank fraud, wire fraud, trade secret theft from five US technology companies, racketeering, and violating US sanctions against Iran
- The case dates to 2018 when Huawei Chief Financial Officer Meng Wanzhou was arrested in Vancouver, sparking a diplomatic crisis involving the US, China, and Canada
- Prosecutors accuse Huawei of supplying surveillance equipment to Iran to track protesters during 2009 anti-government demonstrations in Tehran and lying about North Korea dealings
- Huawei reported US$126 billion in global sales revenue last year, its best performance in nearly five years, and denies all charges while calling the US narrative "demonstrably false"
Why It Matters
The trial represents one of the US government's earliest and most closely watched battles against a Chinese company, unfolding as tech competition intensifies between the two nations and Washington seeks to prevent American technology from aiding Beijing's military. Convictions on the Iran-related charges would bolster Washington's case for placing Huawei on a US trade blacklist in 2019, citing alleged criminal conduct that threatened national security. The outcome could shape the future of US-China tech relations and influence how global companies navigate sanctions and intellectual property regulations in an era of heightened geopolitical tensions .
The trial represents one of the US government's earliest and most closely watched battles against a Chinese company, unfolding as tech competition intensifies between the two nations and Washington seeks to prevent American technology from aiding Beijing's military. Convictions on the Iran-related charges would bolster Washington's case for placing Huawei on a US trade blacklist in 2019, citing alleged criminal conduct that threatened national security. The outcome could shape the future of US-China tech relations and influence how global companies navigate sanctions and intellectual property regulations in an era of heightened geopolitical tensions .