Huawei Technologies is set to face trial in the United States over allegations that it misled financial institutions about its business activities in Iran and conspired to steal trade secrets from American technology companies.
Jury selection is expected to begin Tuesday at a federal court in Brooklyn, New York, eight years after US prosecutors first brought the case against the Chinese technology company.
Huawei has pleaded not guilty to charges including bank and wire fraud, sanctions violations, money laundering, racketeering and obstruction, and has denied wrongdoing.
The company is also accused of conspiring to steal trade secrets from five US technology firms, lying about its business dealings in North Korea and providing surveillance equipment to Iran that was allegedly used to monitor protesters during anti-government demonstrations in Tehran in 2009.
The case dates back to 2018, when Huawei’s then-Chief Financial Officer, Meng Wanzhou, was arrested in Vancouver, Canada, triggering a diplomatic dispute involving the United States, China and Canada.
US prosecutors allege that Huawei used Skycom, a company operating in Iran, to obtain US goods, technology and services that were subject to sanctions and to move money from Iran through the international banking system.
The allegations partly stem from Reuters reports in 2012 and 2013 detailing links between Huawei and Skycom. Reuters reported that Skycom had offered to sell at least €1.3 million worth of embargoed Hewlett-Packard computer equipment to Iran’s largest mobile-phone operator in 2010.
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Prosecutors also allege that Huawei misrepresented its ownership and control of Skycom to HSBC, allowing more than $100 million in US-dollar transactions linked to the company to pass through the banking system.
The trial, being heard by US District Judge Ann Donnelly, is expected to last about three months.
The case could further reinforce Washington’s decision to place Huawei on a US trade blacklist in 2019 over what it described as criminal conduct that posed a national security threat.
Beijing has criticised the prosecution, accusing Washington of using the case to undermine China’s technological development. Huawei has similarly described the charges as an attempt to damage its competitiveness.
The case comes as US-China tensions over technology continue to intensify, particularly in areas such as artificial intelligence and advanced chips.
The indictment covers alleged conduct between 1999 and 2020. If convicted, Huawei could face forfeiture of property or proceeds, prosecutors say were obtained through illegal activity.
About the Author
Cecilia Attah is a tech analyst with a degree from Benue State University. She covers tech news and startups at TechRegard with a focus on how technology is transforming Africa and shaping the global landscape.
