Adversary Intelligence — 2026-09-16
Huawei Faces Racketeering and Trade Secret Theft Charges in Brooklyn Federal Court Trial
BLUFHuawei's Brooklyn racketeering trial is very unlikely to produce a verdict by December 15, 2026, leaving U.S. policymakers without a judicial finding to inform near-term trade decisions with Beijing.
A racketeering conspiracy trial against Huawei Technologies opened last Wednesday in Brooklyn federal court before Judge Ann Donnelly, with DOJ trial attorney Taylor Stout telling jurors Huawei ran a "theft, lies, cover-up" enterprise over roughly two decades and alleging trade-secret theft from five U.S. companies, including video evidence of an employee stealing a T-Mobile robotic testing arm alongside Cisco router source code 12. The company and three subsidiaries face a 16-count superseding indictment covering racketeering conspiracy, conspiracy to steal trade secrets, and bank and wire fraud tied to alleged misappropriation of technology from Cisco and T-Mobile and to false statements to HSBC and Citi about business in Iran 34. Defense attorney Brian Heberlig countered that the case reflects isolated employee misconduct rather than a corporate conspiracy, calling it "competition, not conspiracy" and citing Huawei's roughly 200,000 employees across 170 countries 12. Prosecutors' first witness, Parham Baheshti, testified he passed information to the U.S. government about Huawei's Iran dealings after a 2009 meeting in which Huawei representatives discussed analyzing Iranian citizens' online behavior 12. Judge Donnelly instructed the jury that neither China nor the Chinese Communist Party is on trial 4.
AnalysisA verdict is
very unlikely by December 15, 2026, given the two-decade evidentiary scope, sixteen felony counts, and a multi-witness prosecution strategy signaled by Baheshti's opening testimony, with only opening statements and one witness on record and no expedited scheduling order. We hold moderate confidence in this timeline, resting on that early-stage posture. Reporting itself traces to a single primary source, DOJ's Eastern District of New York press office, with NBC News and Washington Times offering near-identical secondary accounts and The Federalist adding commentary rather than independent reporting. Jurors may find the defense's isolated-misconduct framing, anchored to Huawei's 200,000 employees across 170 countries, more persuasive than a sprawling conspiracy theory built on a handful of anecdotes. Extended proceedings push resolution past Trump's planned meeting with Xi Jinping, denying negotiators a courtroom finding to leverage in export-control and IP-theft demands while continued litigation alone sustains reputational pressure on Huawei.
5 sources
- Racketeering conspiracy trial against Chinese tech giant Huawei begins in New York - NBC News
- Racketeering conspiracy trial against Chinese tech giant Huawei begins in New York - Washington Times
- Chinese Telecommunications Conglomerate Huawei and Subsidiaries Charged in Racketeering Conspiracy and Conspiracy to Steal Trade Secrets - U.S. Attorney's Office, Eastern District of New York (DOJ)
- Charges Against Chinese Telecom Giant Spotlight CCP-Sponsored Intellectual Property Theft - The Federalist
- Racketeering conspiracy trial against Chinese tech giant Huawei begins in New York - Associated Press
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