Huawei Technologies is heading to trial in the United States after prosecutors accused the Chinese telecommunications giant of concealing its business activities in Iran from financial institutions and violating U.S. sanctions.
Jury selection is scheduled to begin in federal court in Brooklyn on Tuesday, marking a major development in a case that began years ago and has become closely linked to the broader technology and national security rivalry between Washington and Beijing. Huawei has pleaded not guilty and denies wrongdoing.
Huawei Accused of Hiding Iran Business From Banks
U.S. prosecutors allege that Huawei used a Hong Kong-based company called Skycom to conduct business in Iran while misleading banks about the nature of its relationship with the company.
The allegations include bank and wire fraud, violations of U.S. sanctions against Iran, money laundering, racketeering and obstruction. Prosecutors say the alleged scheme involved transactions through the international banking system, including more than $100 million in Skycom-related U.S.-dollar transactions cleared by a major banking institution between 2010 and 2014.
The case also includes allegations that Huawei supplied surveillance equipment used by Iranian authorities during the 2009 anti-government protests in Tehran and conducted business in North Korea despite U.S. sanctions.
Trade Secret Allegations Add to Huawei’s Legal Battle
The Iran-related accusations are only part of the broader prosecution. Huawei is also accused of conspiring to obtain trade secrets from five U.S. technology companies.
The U.S. government has alleged that the company engaged in a long-running effort to gain commercial advantages through improper means. Huawei has challenged the government’s case, arguing that some of the allegations improperly seek to apply U.S. criminal law to conduct outside the country.
The trial is expected to last roughly three months and comes as Washington and Beijing remain locked in a wider competition over advanced technology, including artificial intelligence and semiconductor development.
Meng Wanzhou Case Remains Central to the Saga
The legal dispute gained international attention in 2018 when Huawei’s Chief Financial Officer Meng Wanzhou was arrested in Canada following a U.S. extradition request.
U.S. prosecutors had accused Meng of misleading HSBC about Huawei’s relationship with Skycom and its Iran operations. She returned to China in 2021 after an agreement that resulted in the United States dropping its extradition request and moving toward dismissal of the charges against her.
The broader case subsequently became one of Washington’s most significant criminal actions involving a Chinese technology company. The United States placed Huawei on its trade blacklist in 2019, citing national security and alleged criminal conduct. The company has since faced major restrictions on access to U.S. technology while expanding efforts to develop its own chips and other advanced technologies.
The proceedings could further intensify scrutiny of Huawei at a time when U.S.-China technology tensions remain high. The trial is also expected to overlap with a planned September 24 meeting between Chinese President Xi Jinping and U.S. President Donald Trump in Washington.
