US Prosecutors Label Huawei a Criminal Enterprise in Landmark Trial Amid US-China Tech Rivalry

Chinese technology giant Huawei is facing a landmark criminal trial in the United States, as federal prosecutors in Brooklyn, New York, portray the company as a criminal enterprise. The legal proceedings, which began on September 9, unfold amid a long-running technological rivalry between Washington and Beijing and overlap with broader diplomatic tensions.

According to US prosecutors, Huawei engaged in a two-decade pattern of wrongdoing that included racketeering, money laundering, bank and wire fraud, sanctions violations, obstruction, and conspiring to steal trade secrets from five American technology companies. Justice Department lawyer Taylor Stout summarized the government's stance during opening remarks with the phrase, "Theft, lies, cover-up."

Specific allegations presented by the government allege that Huawei stole internet-router source code from Cisco and a robotic arm utilized by T-Mobile for testing phones. Furthermore, prosecutors contend that Huawei concealed the nature of its operations in Iran to route US dollars through the financial system in violation of US sanctions, and supplied equipment that allegedly assisted Iranian authorities in monitoring demonstrators during 2009 protests.

Huawei has pleaded not guilty to all charges and strongly denies any wrongdoing. Defense attorney Brian Heberlig told jurors that the government's case is centered on "competition, not conspiracy" and "innovation, not theft." Heberlig argued that prosecutors are constructing an artificial narrative by "cherry-picking isolated events" and twisting routine global corporate activities into criminal conduct. Huawei has maintained that some referenced incidents involved individual employees acting independently rather than executing company-wide policy, and asserted that the overarching prosecution is an attempt to undermine its global competitiveness.

The case carries significant geopolitical weight as it coincides with Chinese President Xi Jinping’s September 23–25 visit to Washington, where trade, artificial intelligence, tariffs, and critical technologies are expected to be addressed. The Chinese Ministry of Foreign Affairs has strongly criticized the proceedings, stating that Beijing firmly opposes the US suppression and containment of Chinese enterprises and supports them in safeguarding their legitimate rights and interests.

The current trial has deep roots in prior US government actions. The case originated during Donald Trump’s first presidency, which placed Huawei on a US trade blacklist in 2019 and urged international allies to bar the company from 5G telecommunications infrastructure due to national security and espionage concerns. Huawei has consistently denied that its equipment is utilized for spying.

Beyond the Brooklyn courtroom, Huawei has faced regulatory and legal scrutiny internationally. In 2015, Belgian prosecutors initiated an investigation into suspected bribery involving the European Parliament for Huawei’s benefit, prompting the European Parliament to suspend access for Huawei lobbyists. Huawei stated at the time that it maintained a zero-tolerance approach to corruption and cooperated with investigators.

The company also gained widespread attention in 2018 when then-Chief Financial Officer Meng Wanzhou was arrested in Vancouver on a US warrant alleging bank fraud related to business dealings with HSBC in Iran. Meng returned to China in 2021 following a deferred prosecution agreement, and the charges against her were subsequently dismissed. However, a US federal judge ruled in June that admissions Meng made under that agreement are admissible as evidence in Huawei's current trial.

While legally distinct, the Huawei prosecution forms part of a broader economic and technological competition between the United States and China that has expanded from telecommunications and 5G into semiconductors and artificial intelligence. Washington has increasingly restricted China's access to advanced US chips and chipmaking tools, drawing strong counter-responses from Beijing, which controls a dominant share of global rare earth minerals and has implemented strict export controls on critical materials and equipment.