A major U.S. criminal case against Chinese technology giant Huawei has entered trial in Brooklyn, with federal prosecutors accusing the company of using theft, deception and sanctions violations to strengthen its global telecommunications business.
During opening arguments, Justice Department prosecutor Taylor Stout alleged that Huawei spent years targeting American companies for valuable technology while also concealing aspects of its business dealings in Iran. Huawei has strongly rejected the allegations, arguing that prosecutors are presenting isolated incidents as evidence of a broader criminal conspiracy.
Prosecutors Accuse Huawei of Stealing American Technology
The U.S. government alleges that Huawei conspired to obtain trade secrets from several American companies to gain a competitive advantage in the telecommunications industry.
Among the allegations are claims involving technology developed by Cisco Systems and T-Mobile. Prosecutors say Huawei employees obtained sensitive information, including router software source code, while another employee allegedly took a robotic arm used by T-Mobile for testing mobile phones.
The government is expected to present testimony and other evidence intended to show that some Huawei employees deliberately sought proprietary information belonging to competitors.
Prosecutors also allege that Huawei maintained internal efforts designed to collect valuable information from rival companies, portraying the alleged conduct as part of a broader pattern rather than isolated employee misconduct.
Huawei Calls Allegations Distorted and “Cherry-Picked”
Huawei’s defense team offered jurors a sharply different account of the company’s growth. Attorney Brian Heberlig argued that Huawei became a global technology leader through research, investment and competition rather than criminal activity.
The defense contends that prosecutors are taking individual incidents involving employees and using them to construct a larger conspiracy that did not exist. According to Huawei’s lawyers, some employees who acted improperly were disciplined or dismissed after company management became aware of their conduct.
The defense has also challenged the government’s interpretation of Huawei’s international business activities, arguing that ordinary practices within a multinational technology company are being portrayed as criminal behavior.
Iran Dealings and Meng Wanzhou’s Role
The case initially emerged in 2018 with allegations involving bank fraud and violations of U.S. sanctions connected to Huawei’s operations in Iran. Prosecutors claim the company concealed the nature of those activities and used the U.S. financial system to move money despite sanctions.
The case later expanded to include racketeering allegations involving an alleged pattern of criminal activity.
Huawei CFO Meng Wanzhou became a central figure in the dispute after she was arrested in Canada in 2018 on a U.S. warrant. She spent nearly three years fighting extradition before reaching an agreement with U.S. prosecutors that allowed her to return to China in 2021. The charges against her were later dismissed under the agreement, while statements she previously made are expected to be presented as evidence in Huawei’s trial.
The proceedings are expected to continue for roughly three months and could become another major point of tension in already strained U.S.-China relations.
