NEW YORK: Chinese telecommunications giant Huawei is heading to trial in a US federal court in Brooklyn, eight years after prosecutors first brought a sweeping criminal case alleging that the company misled international banks about its business activities in Iran.
Jury selection was expected to begin on Tuesday. Prosecutors accuse Huawei of offences including bank fraud, sanctions violations, money laundering, racketeering, wire fraud and obstruction of justice. The company is also accused of conspiring to steal trade secrets from five American technology firms. Huawei has pleaded not guilty and denies wrongdoing.
A central part of the case involves Huawei’s relationship with Skycom, a company that operated in Iran. US prosecutors allege Huawei used Skycom to obtain embargoed American technology and conduct financial transactions connected with its Iranian business while concealing the true nature of the relationship from banks.
The dispute has already had enormous diplomatic consequences. Huawei chief financial officer Meng Wanzhou was arrested in Canada in 2018 on a US warrant, triggering a prolonged diplomatic confrontation involving Washington, Beijing and Ottawa. Charges against Meng were eventually dismissed under a separate agreement, but the broader prosecution of Huawei continued.
The trial is expected to last approximately three months. Its significance extends well beyond the courtroom: Huawei has become central to China’s ambitions in telecommunications and AI chips, while US-China competition over advanced technology has intensified dramatically.