A US judge this week rejected Huawei's bid to dismiss criminal charges that allege the vendor stole technology secrets from US rivals.
As first reported by Reuters earlier this week, US District Judge Ann Donnelly found sufficient allegations that Huawei also misled the US over its work in Iran, engaged in racketeering to grow its brand, stole trade secrets from six companies, and committed bank fraud.
Chinese vendor Huawei has been firmly under the microscope of the US for a long while.
Since 2019, the US government has restricted Huawei's access to American technology, alleging the vendor is a threat to its national security.
In a 52-page document, the Judge rejected Huawei's bid to have 13 of the 16 counts against the company dismissed. The vendor has rejected the allegations against it, pleading not guilty.
The case stems back to 2018, during President Donald Trump's first term when the Department of Justice kicked off its China Initiative to address Beijing's alleged theft of intellectual property.
In that same year, Meng Wanzhou, Huawei chief financial officer, and daughter of Huawei's founder was detained in Canada for nearly three years after being accused of committing bank fraud to mislead HSBC into providing services for a Huawei division that was violating US sanctions in Iran.
Charges against Meng were eventually dismissed by the US, though as part of the deal, Meng acknowledged that she made false statements to the bank about the company's dealings in Iran.
In the document, Judge Donnelly deemed the allegations against Huawei over its business in Iran to be sufficient enough.
The allegations around Huawei's dealings in Iran relate to its alleged control of Skycom, a Hong Kong-based company that did business in Iran.
It's alleged that Huawei operated Skycom in order to "obtain otherwise prohibited US-origin goods, technology and services, including banking services” for its Iran-based business, "while concealing the link between the companies."
“Dismissal of charges is an extraordinary remedy reserved for extremely limited circumstances implicating fundamental rights,” read the document.
A trial is expected to begin on May 6, 2026.
DCD has contacted Huawei for comment.
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