A federal judge in Brooklyn has rejected Huawei Technologies’ attempt to dismiss most charges in a U.S. criminal case accusing the Chinese telecom giant of stealing technology secrets and misleading banks about its activities in Iran. In a detailed 52-page ruling on Tuesday, U.S. District Judge Ann Donnelly upheld sufficient allegations from a 16-count indictment, including racketeering, theft of trade secrets from six companies, and bank fraud.
The indictment also alleges that Huawei covertly controlled Skycom, a Hong Kong-based company, which conducted business in Iran. Prosecutors claim Skycom operated effectively as Huawei’s Iranian subsidiary, benefiting indirectly from over $100 million transferred through the U.S. financial system in violation of sanctions.
Huawei has pleaded not guilty and sought to dismiss 13 counts, calling the case “a prosecutorial target in search of a crime.” The trial is set for May 4, 2026, and may last several months.
This high-profile case began in 2018 under the Trump administration’s China Initiative, which aimed to combat intellectual property theft by Chinese entities. Huawei’s CFO Meng Wanzhou, detained in Canada for nearly three years, had charges dismissed in 2022. The Biden administration ended the China Initiative amid criticism of racial profiling and chilling effects on research.
Huawei, headquartered in Shenzhen, operates in over 170 countries with approximately 208,000 employees. The U.S. has restricted Huawei’s access to American technology since 2019 over national security concerns, which Huawei denies.