After attending the Huawei New Product Launch Conference held in Beijing on September 25, 2023, customers will carry Huawei products purchased outside of Huawei stores. Credits: AP Photo/Andy Wong, File
A US judge ruled that China’s Huawei Technologies, a leading telecom equipment company, must face criminal charges in a wide range of reach cases that claim it steals technology and engages in rackets, wires, bank fraud and other crimes.
US District Judge Anne Donnelly on Tuesday rejected Huawei’s request to dismiss the claim in a 16-count federal complaint against the company, saying that the argument is premature in the 52-page ruling.
The company did not immediately respond to requests for comment.
The US has denounced Huawei and some of its subsidiaries of stealing US trade secrets, installing surveillance equipment that allowed Iran to spy on protesters during the 2009 anti-government demonstrations in Iran, and conducting business in North Korea despite US sanctions.
During President Donald Trump’s inauguration, his administration raised national security concerns and began working with Western allies for the inclusion of Huawei in wireless high-speed networks.
In the January 2019 charges, the Justice Department accused Huawei of using a Hong Kong shell company called Skycom to sell equipment to Iran in violation of US sanctions, accusing Meng Wanzhou and claiming HSBC Bank of fraud by misleading its business transactions in Iran.
Meng, the daughter of Huawei founder, was arrested in Canada in late 2018 on a US extradition request, but was arrested in September 2021 for a high-stakes prisoner swap that freed two Canadians held by China and allowed them to return home.
Chinese officials have accused the US government of “economic bullying” and improperly using national security as an excuse for “repressing Chinese companies.” In a motion to dismiss a wide range of criminal cases, even among Huawei’s lawyers, the US claims were too vague, some “relentlessly out-of-territorial” and that they did not involve fraud by domestic wires and banks.
Huawei, the largest manufacturer of network gear, struggled to hold market share under sanctions that blocked access to most US processor chips and other technologies. This limitation has led to an enhanced development of computer chips and other advanced technologies.
The company has also shifted its focus to the Chinese market and network technology for hospitals, factories, other industrial customers and other products that are not affected by US sanctions.
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