Was Huawei’s rise built on crime? U.S. prosecutors bring 20 years of allegations to trial

Huawei is heading to criminal trial in New York under a sweeping U.S. prosecution that asks whether the Chinese technology giant’s rise was built on crime. Prosecutors accuse the company of operating like a criminal enterprise over two decades, stealing competitors’ trade secrets, misleading banks about its Iranian business and violating sanctions.

At the center of the case is an alleged “competition management group” inside Huawei. According to prosecutors, the group paid monthly bonuses to employees who obtained valuable information from competitors. Employees could then send the material through encrypted email to a dedicated mailbox.

One allegation concerns a T-Mobile testing robot. The indictment says a Huawei employee entered a T-Mobile laboratory in 2013, placed a robotic arm in a laptop bag and took it away. Before T-Mobile discovered and recovered the arm, a Huawei engineer had sent photographs and measurements of its parts to colleagues.

The accusations also involve Iran and North Korea. Prosecutors say Huawei used the code names “A2” for Iran and “A9” for North Korea, while company representatives denied to banks that Huawei was involved in several North Korean projects. The United States further alleges that Huawei helped Iran install surveillance equipment used to monitor, identify and detain protesters during anti-government demonstrations in 2009.

Meng Wanzhou, the daughter of Huawei founder Ren Zhengfei, is not a defendant but could play an important role. Prosecutors have received permission to show jurors documents she signed after her 2018 arrest in Vancouver and 2021 release. The documents describe Skycom, which mainly operated in Iran, as a third party working with Huawei, while prosecutors say Huawei controlled it. They also say she told a bank Huawei had sold all of Skycom, although the shares went to another Huawei-controlled entity.

Huawei rejects the prosecution’s case, saying the Justice Department has forced unrelated allegations into a single criminal pattern. The company says trade-secret disputes are common among major technology companies and that some allegations are outside the statute of limitations. Huawei maintains that its success comes from long-term investment in innovation and respect for intellectual property. If convicted, it could face a fine of up to twice the proceeds linked to the alleged crimes under RICO. The trial also arrives during a sensitive period in U.S.-China relations, with the case carrying implications beyond the courtroom.

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My view is that Huawei has basically given up on the idea that it might one day re-enter the U.S. market.