A U.S. federal judge on Tuesday rejected Huawei Technologies Co Ltd's request to dismiss the majority of charges in a sweeping indictment, allowing the Chinese telecoms giant to face trial over allegations of trade secret theft, bank fraud, and sanctions violations.

U.S. District Judge Ann Donnelly in Brooklyn ruled that prosecutors had presented adequate grounds in their 16-count indictment to proceed, particularly with racketeering and fraud claims. 

Huawei, which pleaded not guilty, had sought to dismiss 13 of the 16 charges, claiming it was “a prosecutorial target in search of a crime.” The company and its attorneys did not comment following the ruling. U.S. prosecutors also declined to issue a statement.

The trial is scheduled to begin on 4 May 2026, and could last several months.

Key Allegations

Racketeering: Prosecutors accuse Huawei of engaging in a criminal scheme to steal intellectual property from six U.S. tech companies to grow its business.

Sanctions violations: Huawei allegedly used Skycom Tech Co Ltd, a Hong Kong-based affiliate, to conduct illegal business in Iran, in violation of U.S. sanctions.

Bank fraud: The company is accused of misleading banks about its relationship with Skycom, funneling over $100 million through the U.S. financial system.

Judge Donnelly found that Skycom “operated as Huawei’s Iranian subsidiary” and indirectly benefited from the transfers, thereby implicating Huawei in sanctions violations.

Background

The case dates back to 2018, during President Donald Trump’s first term, when the U.S. Department of Justice launched the China Initiative, a program aimed at countering alleged Chinese theft of American intellectual property. While that initiative was ended in 2022 under President Joe Biden, the Huawei case has continued under standard legal channels.

Notably, Huawei CFO Meng Wanzhou, the daughter of the company’s founder, was previously arrested in Canada and held for nearly three years before her release in 2021. Charges against her were dropped the following year.

Wider Impact

Huawei, headquartered in Shenzhen and employing over 200,000 people globally, has been the target of numerous U.S. restrictions, including limits on access to American technology since 2019. The U.S. government continues to cite national security concerns, claims that Huawei has consistently denied.

The case, U.S. v. Huawei Technologies Co et al, is being heard in the U.S. District Court for the Eastern District of New York (No. 18-cr-00457).

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