Huawei faces New York trial over alleged trade-secret theft and bank fraud

Huawei entered a criminal trial in New York on Tuesday, facing accusations that it stole technology, conspired to obtain U.S. trade secrets and committed wire and bank fraud. Jury selection began before federal judge Ann Donnelly, and the proceedings are expected to last about three months.

The case adds a new chapter to the long dispute between Washington and the Chinese telecommunications company. Prosecutors allege that Huawei and some of its subsidiaries conducted business in North Korea despite U.S. sanctions. They also accuse the company of installing surveillance equipment that helped Iranian authorities monitor protesters during anti-government demonstrations in 2009.

Huawei’s lawyers have tried to have the case dismissed. They argue that the charges are “imprecise” and that U.S. prosecutors are improperly extending their jurisdiction to activities carried out in other countries.

The trial revisits Huawei’s dealings with Iran. In 2019, prosecutors accused the company of using an unofficial Hong Kong-based subsidiary, Skycom, to sell equipment to Iran in violation of U.S. sanctions. The case also recalls the prosecution of Huawei chief financial officer Meng Wanzhou, the company founder’s daughter, who was accused of misleading HSBC about Huawei’s Iranian operations.

Canadian authorities arrested Meng at the request of the United States in late 2018. She spent almost three years under extradition proceedings before returning to China in 2021. Her arrest triggered a serious diplomatic crisis between Beijing and Ottawa, during which China detained two Canadian citizens on espionage accusations. Washington later withdrew its extradition request and dropped the charges against Meng, while the two Canadians were released.

The allegations against Huawei date back, according to prosecutors, to events beginning in the late 1990s. The case became public in 2019, during Donald Trump’s first term, and prosecutors later expanded it. Court filings show that Huawei pleaded not guilty in March 2020 to all charges in a superseding indictment, including racketeering and conspiracy to steal trade secrets from U.S. technology companies.

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