Published: 12:23 PM, 11 September 2026
US Prosecutor Terms China’s Huawei a Criminal Enterprise
In opening arguments, US Department of Justice trial attorney Taylor Stout accused Huawei of engaging in a long-running campaign to obtain confidential technology from American companies. AP
A high-profile criminal trial against Chinese telecommunications giant Huawei has opened in a US federal court in Brooklyn, with prosecutors portraying the company as a “criminal enterprise” that used theft, deception and sanctions violations to build its global telecommunications empire. The case has renewed tensions between Washington and Beijing and could have significant consequences for the future of US-China technology relations, reports Reuters.
In opening arguments, US Department of Justice trial attorney Taylor Stout accused Huawei of engaging in a long-running campaign to obtain confidential technology from American companies. Prosecutors allege that Huawei stole trade secrets and proprietary technology, including internet-router source code and technology associated with mobile-phone testing, to gain an unfair competitive advantage.
The allegations are not entirely new. In 2020, the US Justice Department charged Huawei and several subsidiaries with racketeering conspiracy and conspiracy to steal trade secrets. The indictment alleged that the company had, over many years, sought intellectual property from several US technology companies through fraud and deception. It also accused Huawei of conducting business involving countries such as Iran and North Korea despite US restrictions.
The current trial also involves allegations concerning Huawei’s dealings with Iran. US prosecutors claim the company concealed aspects of its Iranian business and used the US financial system while attempting to evade sanctions. The prosecution has presented the case as a broad pattern of corporate misconduct rather than a collection of isolated incidents.
Huawei, however, strongly rejects the accusations. Its defence lawyers argue that the government has taken isolated incidents and presented them as evidence of a company-wide criminal strategy. They maintain that Huawei became a global technology leader through innovation, investment in research and development, and legitimate competition. The defence has also suggested that the prosecution is influenced by the broader political and economic conflict between the United States and China.
The case has a long history. Huawei and its executives faced US allegations involving bank fraud, sanctions violations and other offences beginning years ago. Huawei Chief Financial Officer Meng Wanzhou was also charged with fraud connected to allegations concerning the company's Iranian operations. In 2021, Meng entered into a deferred prosecution agreement with US authorities and agreed to the accuracy of a statement of facts concerning misleading statements made to a financial institution.
The Huawei controversy is part of a much larger struggle over technology, trade and national security. The United States has taken increasingly restrictive measures against Huawei, citing concerns about national security and the potential risks associated with Chinese telecommunications equipment. Several US allies have also restricted or limited Huawei’s role in sensitive telecommunications infrastructure.
For Washington, the trial represents an opportunity to demonstrate that major international companies are not above US law. For Beijing and Huawei, however, the proceedings may reinforce concerns that American restrictions are designed partly to limit China’s technological rise.
The outcome of the trial could therefore extend beyond the courtroom. A conviction could result in serious financial and legal consequences for Huawei and further complicate US-China relations. It could also influence how governments around the world regulate foreign technology companies and protect intellectual property.
The case highlights the growing importance of trust, transparency and legal compliance in the global technology industry. As countries compete for leadership in telecommunications, artificial intelligence and advanced computing, disputes over intellectual property and national security are likely to become increasingly important.
For now, the allegations remain allegations, and the jury must decide whether prosecutors have proved their case.
Whatever the final verdict, the trial has already become a significant chapter in the continuing technological and geopolitical rivalry between the United States and China.
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