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Huawei’s US racketeering and trade-secrets trial opens in Brooklyn

Federal prosecutors and Huawei presented sharply opposed accounts as a long-running case over alleged technology theft, Iran-related transactions and corporate conduct reached a jury.

A long-running case reaches trial

Huawei’s federal trial has opened in Brooklyn, moving an eight-year US prosecution of the Chinese telecommunications company into its decisive courtroom phase. In opening statements, prosecutors portrayed the company as an organised enterprise that used stolen technology and deceptive financial practices to expand internationally. Huawei’s lawyers rejected that account and argued that prosecutors were recasting ordinary competition, innovation and isolated employee misconduct as a corporate conspiracy. The allegations remain unproven, and the jury will have to assess evidence expected to be presented over roughly three months.

What prosecutors and the defence dispute

The government alleges that Huawei conspired to obtain trade secrets from five American companies. Examples presented at the opening included router operating-system code associated with Cisco and a robotic phone-testing device belonging to T-Mobile. Prosecutors also contend that Huawei concealed the nature of its activities in Iran, allowing dollar-denominated transactions to pass through the US financial system despite sanctions. The defence says there is no overarching criminal plan, that Huawei earned its commercial position legitimately and that management addressed individual wrongdoing when it became aware of it.

The case grew from indictments first brought in 2018. Huawei finance chief Meng Wanzhou was detained in Canada on a US warrant before returning to China under a deferred-prosecution arrangement. Charges against Meng were later dismissed, but admissions connected to that agreement are expected to feature in the corporate trial. Huawei itself faces allegations including racketeering, bank fraud and sanctions-related misconduct. None of those charges should be treated as established fact before a verdict.

Why the trial matters beyond one company

The proceedings sit inside a much larger US-China dispute over telecommunications infrastructure, advanced chips and the security of technology supply chains. Huawei equipment is restricted in the United States, and exports of American goods or technology to the company generally require government approval. The Defense Department has separately described Chinese military-civil fusion as a reason for identifying companies whose ostensibly commercial capabilities may contribute to Chinese military modernisation. That policy context does not prove the criminal case, but it explains why the trial carries consequences beyond damages or penalties.

What comes next

Jurors will now hear witnesses and review corporate records, communications and evidence concerning the alleged acquisition of proprietary technology and the movement of money connected to Iran. The prosecution must link separate episodes to the charged enterprise rather than merely show intense commercial rivalry. Huawei will seek to separate employee conduct from corporate direction and challenge the government’s sanctions theory. The verdict could affect the company’s remaining exposure in the United States while adding another pressure point to already strained relations between Washington and Beijing.