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Huawei Criminal Trial Begins in New York

Financial Times Companies •
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A Brooklyn jury will decide whether Huawei’s rise was built on criminal activity, as prosecutors allege the company operated a racketeering enterprise for two decades. The case includes claims of stealing competitors’ secrets via a "competition management group" that paid bonuses for espionage, misleading banks about Iran business, and even taking a T-Mobile robot arm. Huawei denies the charges, calling the prosecution politically motivated.

Revenue hit $127bn last year. The trial, expected to last months, could complicate President Xi Jinping’s upcoming Washington visit. Legal experts note the case intersects technology, sanctions, and US-China diplomacy.

If convicted, Huawei could face fines twice the illicit gains under racketeering laws. The trial is in the Eastern District of New York, venue for past cases against Gautam Adani and FIFA officials. Huawei remains on the US Entity List since 2019 but has expanded into EVs and AI despite sanctions.

Meng Wanzhou, CFO and daughter of founder Ren Zhengfei, is not on trial but may appear as a witness.