Huawei faces US trial over alleged trade-secret theft and wire fraud

Huawei went on trial in New York on allegations that the Chinese telecommunications company stole technology, conspired to obtain US trade secrets and committed wire and bank fraud.

Jury selection began Tuesday before federal judge Ann Donnelly, with the proceedings expected to last about three months. The case marks another chapter in Huawei’s long-running dispute with Washington, which has increasingly targeted the company in recent years.

According to the prosecution’s court filing, Huawei and some of its subsidiaries conducted business in North Korea despite US sanctions. Prosecutors also allege that the company installed surveillance equipment that helped Iranian authorities monitor protesters during the 2009 antigovernment demonstrations.

Huawei’s lawyers have sought to have the case dismissed, arguing that the accusations are imprecise and that US prosecutors are improperly extending their jurisdiction to activities carried out in other countries.

The trial also revisits Huawei’s dealings with Iran. In 2019, US prosecutors accused the company of using an unofficial Hong Kong-based subsidiary, Skycom, to sell equipment to Iran in violation of US sanctions. The case also involved Meng Wanzhou, Huawei’s chief financial officer and daughter of its founder, whom the United States accused of misleading HSBC about the company’s Iranian operations. Canada detained Meng in late 2018 at Washington’s request. She spent almost three years under extradition proceedings before returning to China in 2021, after Washington withdrew its request and dismissed the charges. The episode triggered a diplomatic crisis between Beijing and Ottawa, while China detained two Canadian citizens who were later released.