Indo-Pacific — 2026-09-21
US Prosecutors Label Huawei Criminal Enterprise in Trial Over Decades-Long Scheme to Steal Technology and Evade Iran Sanctions
BLUFConviction on at least one felony count is very likely by year-end 2026, injecting a fresh irritant into US-China diplomacy that will constrain tariff negotiations at the Trump-Xi summit.
A U.S. trial against Huawei opened September 9 in Brooklyn federal court, where DOJ attorney Taylor Stout told jurors the company ran a "far-reaching criminal scheme" spanning roughly 1999 to 2020, calling it "theft, lies, cover-up" 123. Huawei and three subsidiaries face 12 felony counts including racketeering, trade-secret theft, bank and wire fraud, and IEEPA sanctions violations tied to concealed business in Iran, with prosecutors citing video evidence of an employee taking a T-Mobile testing robot and stolen Cisco router source code 12. Defense attorney Brian Heberlig countered that prosecutors are "cherry-picking isolated events," calling the case "competition, not conspiracy" and noting gaps in the government's timeline 123. Judge Ann Donnelly ruled in June that admissions from CFO Meng Wanzhou's 2021 deferred prosecution agreement, in which she acknowledged misleading HSBC about Huawei's Iran dealings, can be used against the company at trial, expected to run about three months 23. China's Foreign Ministry called the prosecution U.S. "suppression" of Chinese enterprises 3.
AnalysisA conviction on at least one of the 12 felony counts is
very likely by the time the Brooklyn trial concludes near year-end 2026. We have high confidence in this judgment, given the volume of documentary and video evidence prosecutors have signaled and Judge Donnelly's ruling admitting Meng Wanzhou's 2021 bank-fraud admissions against the company. That evidentiary ruling removes a central hurdle for the sanctions and fraud counts specifically, even as the racketeering theory spanning 1999 to 2020 remains harder to sustain across all charges. Beijing's characterization of the prosecution as suppression of Chinese enterprises ensures the case carries diplomatic weight independent of the jury's count-by-count findings, complicating any effort to decouple the trial's outcome from the broader US-China technology dispute. The trial's diplomatic overhang may constrain the scope of any tariff concessions at the Trump-Xi Washington summit.
4 sources
- US trial against China's Huawei opens with prosecutor calling the company a criminal enterprise - Reuters
- Huawei rebuts criminal charges at trial over trade secrets, Iranian sanctions - Courthouse News Service
- Why have US prosecutors labelled China's Huawei a criminal enterprise? - Al Jazeera
- US prosecutors accuse Huawei of far-reaching criminal scheme spanning decades - ICIJ
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