NEW YORK — Huawei Technologies, one of the world’s largest telecommunications equipment manufacturers, is facing a criminal racketeering trial in New York over allegations that it stole technology, sought to obtain U.S. trade secrets and committed wire and bank fraud.
U.S. prosecutors allege that Huawei and some of its subsidiaries were involved in a range of unlawful activities, including conducting business in North Korea despite U.S. sanctions and supplying surveillance equipment that allegedly assisted Iran in monitoring protesters during the country’s 2009 anti-government demonstrations.
Huawei has denied the allegations and has sought to have the case dismissed. Its lawyers argue that some of the government’s claims are too vague, extend improperly beyond U.S. territory and fail to establish the required elements of domestic wire and bank fraud.
Huawei is the world’s largest supplier of telecommunications network equipment. The company has been prohibited from selling its equipment to U.S. telecommunications carriers because of national security concerns. Several U.S. allies, including Canada and the United Kingdom, have also imposed restrictions on Huawei’s involvement in their telecommunications infrastructure.
The Chinese technology giant also produces smartphones and other consumer electronics. However, U.S. restrictions have limited its access to key technologies and markets. In recent years, Huawei has increasingly focused on developing its own semiconductor and advanced computing technologies as global demand for chips continues to grow alongside artificial intelligence.
The U.S. government intensified its scrutiny of Huawei during Donald Trump’s first presidency, raising national security concerns and urging allied countries to exclude the company from next-generation wireless networks. Federal prosecutors announced criminal charges against Huawei in 2019 and have since expanded the allegations.
Chinese officials have strongly criticized the U.S. actions, accusing Washington of engaging in “economic bullying” and using national security concerns as a justification for targeting Chinese companies.
The U.S. case also previously focused on Huawei’s alleged use of a Hong Kong-based company, Skycom, to conduct business involving Iran in violation of American sanctions. Prosecutors separately accused Huawei’s chief financial officer, Meng Wanzhou, of misleading HSBC about the company’s business dealings in Iran.
Meng, the daughter of Huawei founder Ren Zhengfei, was arrested in Canada in 2018 following a U.S. extradition request. She was released in September 2021 after the United States withdrew its extradition request and agreed to dismiss the fraud charges against her.
The case has become part of a broader dispute between Washington and Beijing over technology, trade and national security.
Facing extensive U.S. restrictions that have limited its access to advanced American processors and other technologies, Huawei has invested heavily in domestic semiconductor development and other advanced technologies in an effort to maintain its position in the global technology industry.