Huawei goes on trial in US for racketeering after nearly decade of litigation

Huawei Technologies went on trial in a Brooklyn federal court, facing 14 criminal counts including racketeering, bank fraud, and trade secret theft. Federal prosecutors allege a decades-long scheme to steal American technology and deceive banks about Iran ties, while defense attorneys argue the charges rely on isolated incidents and bad employee behavior.

Federal Racketeering Charges and the Brooklyn Courtroom Opening

Chinese tech giant Huawei Technologies went on trial on Tuesday in Brooklyn, New York, marking a courtroom showdown after eight years of legal wrangling with the United States government. The Shenzhen-based company has pleaded not guilty to all 14 criminal counts. The indictment spans allegations dating back to 1999, incorporating charges of wire fraud, bank fraud, trade secret theft, and racketeering.

US District Judge Ann M. Donnelly of the Eastern District of New York presided over jury selection, instructing potential jurors to remain as fair and impartial as possible. China and the Communist Party … are not on trial, she told the panel, while also directing the jury to disregard the ongoing US-Iran conflict during their deliberations.

During opening arguments on Wednesday, Department of Justice attorney Taylor Stout outlined the government’s case to the Brooklyn jury, asserting that the company committed multiple crimes across two decades. Federal prosecutors maintain that Huawei operated a broad racketeering scheme to expand its global footprint by stealing intellectual property, violating US sanctions against Iran, and misleading major financial institutions regarding its Tehran connections.

Defense Arguments and the Insider Witness Testimony

Defense attorney Brian Heberlig pushed back against the government’s narrative during his opening statement, telling jurors that prosecutors had manufactured a criminal enterprise out of disconnected anecdotes. Heberlig pointed out that Huawei employs roughly 200,000 workers across 170 countries, arguing that the government was unfairly penalizing the organization for the isolated misconduct of a few individuals.

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Huawei goes on trial in US for racketeering after nearly decade of litigation
Photo: wsls.com

Heberlig emphasized that real people had their careers and personal integrity on the line, adding that some of the testimony against the company was fueled by old grudges. The defense attorney specifically addressed plans by prosecutors to present photographic evidence of a Huawei employee photographing a rival product at a trade show. He noted that the government omitted the fact that Huawei promptly fired the worker for that foolish act, arguing it demonstrated internal accountability rather than a companywide conspiracy.

Huawei goes on trial in US for racketeering after nearly decade of litigation
Photo: SCMP

The prosecution’s first witness was Parham Baheshti, a U.S. citizen who moved to Iran in 2003 and later worked for a company bringing internet access to rural Iranian areas in 2009. Baheshti testified that he began feeding secrets to the US government after concluding that Huawei cared little about expanding internet access and instead focused on its own agenda. He recounted a meeting where Huawei representatives pitched software for analyzing the Iranian population and their online behavior, describing the experience as infuriating before he left Iran in 2011 under investigation.

Geopolitical Fallout and Global Telecom Restrictions

While Huawei stands as the world’s biggest supplier of equipment for wireless telecommunications networks, it faces severe Western restrictions. The company is banned from selling gear to US carriers over national security concerns and remains blacklisted by allies including Britain and Canada. Chinese officials have consistently condemned the prosecution, accusing Washington of economic bullying and misusing national security pretexts to suppress Chinese competitors.

Huawei goes on trial in the US for racketeering

The legal battle traces its roots to the first term of President Donald Trump, when administration officials raised alarms about the company’s network equipment and urged allies to exclude Huawei from next-generation wireless infrastructure. The Justice Department formally announced criminal charges against the company in early 2019, steadily expanding the scope of the allegations over the subsequent years.

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Although consumer electronics and smartphones remain a core part of its business, Huawei has diversified away from restricted markets. Amid a surging global demand for artificial intelligence microprocessors driven by the tech boom, the company has increasingly expanded its footprint into advanced chipmaking.

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