Huawei Trial Opens in Brooklyn as Prosecutors Label Company a 'Criminal Enterprise'
The criminal trial of Huawei began Wednesday in Brooklyn federal court, with U.S. prosecutors alleging the company operated as a criminal enterprise for two decades by stealing trade secrets and violating Iran sanctions. The defense countered that the charges misinterpret ordinary business competition and individual employee actions.
The criminal trial of Chinese telecommunications giant Huawei commenced on Wednesday at the federal court in Brooklyn. In opening statements, U.S. prosecutor Taylor Stout characterized the company as a "criminal enterprise" accused of engaging in misconduct against American companies for 20 years.
Prosecutors allege that Huawei conspired to steal trade secrets from five U.S. companies. Specific allegations include the theft of source code from Cisco Systems and a robotic arm from T-Mobile. Additionally, the government claims Huawei laundered money through the U.S. financial system in violation of sanctions related to Iran. The case is based partly on Reuters reporting from 2012 and 2013 regarding ties between Huawei and Skycom, a firm operating in Iran. Reports indicate Skycom offered €1.3 million (US$1.5-million) worth of equipment to Iran.
In response, defense attorney Brian Heberlig argued that Huawei’s success was driven by innovation and competition rather than theft or conspiracy. The defense contended that incidents involving Cisco and T-Mobile were the actions of individual employees, not corporate policy. Heberlig further stated that there is no evidence Huawei knew its dealings would violate the law, noting that banks were aware of the Iran business.
The legal proceedings originate from a 2018 indictment charging Huawei and its Chief Financial Officer, Meng Wanzhou, with bank fraud and sanctions violations. Meng was detained in Vancouver in 2018 and returned to China in 2021 following a diplomatic agreement; her personal charges were dismissed in 2022, though admissions made during that process may be used as evidence in this trial. The trial is expected to last three months.
On Thursday, a spokesperson for the Chinese Foreign Ministry stated that China firmly opposes U.S. suppression of Chinese enterprises. Currently, Huawei's networking gear is restricted in the United States, and suppliers are banned from exporting U.S. goods to the company without approval.