A U.S. judge has ruled that Huawei Technologies, China’s top telecom equipment maker, must face a sweeping criminal case accusing the company of stealing trade secrets, racketeering, wire and bank fraud, among other charges.
On Tuesday, U.S. District Judge Ann Donnelly denied Huawei’s motion to dismiss the 16-count federal indictment, stating in a 52-page decision that the arguments presented were premature.
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Huawei has yet to comment on the ruling.
The U.S. government alleges that Huawei and several subsidiaries conspired to steal American trade secrets, supplied surveillance equipment that Iran used to monitor protesters during the 2009 anti-government demonstrations, and conducted business with North Korea despite strict U.S. sanctions.
During Donald Trump’s presidency, national security concerns about Huawei led the administration to urge Western allies not to include the company in their 5G network infrastructure.
The January 2019 indictment from the Justice Department accused Huawei of using a Hong Kong-based front company, Skycom, to sell tech equipment to Iran in violation of sanctions. It also charged CFO, Meng Wanzhou with fraud, alleging she misled HSBC about Huawei’s dealings with Iran.
Meng, daughter of Huawei’s founder, was arrested in Canada in 2018 following a U.S. extradition request. She was later released in 2021 in a high-profile prisoner swap that allowed her to return to China and freed two Canadians detained by Beijing.
Huawei’s lawyers argued the case should be dismissed, claiming the charges were vague, overreached U.S. jurisdiction, and failed to establish domestic wire or bank fraud. But the judge disagreed.
The company, a global leader in network equipment, has been under pressure from U.S. sanctions that cut off access to American chips and other advanced technology. In response, Huawei accelerated the development of its own semiconductors and tech innovations.
It has also shifted focus to the Chinese domestic market and industrial sectors like hospitals and factories—areas less affected by U.S. export restrictions.
