Huawei goes on trial in US for racketeering after nearly decade of litigation

On Tuesday, Huawei Technologies, a Chinese tech giant, began its trial in Brooklyn, New York for racketeering, following eight years of litigation with the US government. The company has pleaded not guilty to 14 charges, including bank fraud, wire fraud, trade secret theft, and racketeering, with alleged criminal activity dating back to 1999.

Jury selection commenced on Tuesday, with US District Judge Ann M. Donnelly instructing potential jurors to be fair and impartial, clarifying that China and the Communist Party were not on trial, and that the US-Iran conflict should not impact the judges' decision. Federal prosecutors alleged that Huawei carried out a decades-long scheme involving intellectual property theft, US sanctions violations on Iran, and deceiving major banks about its ties to Iran, all of which the company denies.

Huawei stated that the US government's narrative was false and that its recent success, including $126 billion in global sales revenue last year, was achieved through its own research and development efforts. Prosecutors dropped two counts of sanctions violations on September 4, proceeding with the remaining 12 charges. If convicted, Huawei could face fines and forfeited proceeds, potentially in the billions of US dollars.

The US government first charged Huawei in 2019, causing a major diplomatic rift between China and the US, leading to Meng Wanzhou's extradition from Canada in 2021. Meng admitted to lying to US financial institutions about Huawei's business in Iran, as part of a deal where the US dropped its extradition request. Huawei is represented by Jenner & Block, Sidley Austin, and Steptoe, while the prosecution has sought to call 25 China-based Huawei employees, including Meng, to testify. The trial is expected to conclude by November, with the defense potentially needing around a month.