A U.S. federal judge has reportedly ruled that Huawei Technologies, China’s leading telecommunications equipment manufacturer, must face a sweeping 16-count indictment accusing the company of stealing trade secrets, racketeering, wire and bank fraud, and violating U.S. sanctions. U.S. District Judge Ann Donnelly rejected Huawei’s motion to dismiss the charges, calling the company’s arguments premature in a 52-page ruling, according to court documents.According to a report by news agency AP, the U.S. Justice Department (DoJ) alleges that Huawei and its subsidiaries engaged in a concerted effort to steal American trade secrets, installed surveillance equipment that aided Iran in monitoring protesters during 2009 anti-government demonstrations, and conducted business in North Korea despite U.S. sanctions. The 2019 indictment also charged Huawei with using a Hong Kong shell company, Skycom, to sell equipment to Iran in violation of sanctions, and accused its chief financial officer, Meng Wanzhou, of misleading HSBC about Huawei’s Iranian dealings.

Arrest of Huawei founder’s daughter in Canada

Meng, the daughter of Huawei’s founder, was arrested in Canada in 2018 on a U.S. extradition request but was released in 2021 as part of a prisoner swap that freed two Canadians detained by China. Huawei did not immediately respond to requests for comment on the ruling. The case, which intensified during former President Donald Trump’s administration, saw the U.S. raise national security concerns and urge Western allies to exclude Huawei from their high-speed wireless networks. Chinese officials have countered, accusing the U.S. of “economic bullying” and using national security as a pretext to suppress Chinese companies. Huawei’s legal team argued the allegations were vague and some charges improperly applied U.S. law extraterritorially.Facing U.S. sanctions that have restricted access to American processor chips and technology, Huawei, the world’s largest network gear maker, has pivoted to developing its own chips and focusing on the Chinese market. The company has also expanded into network technology for hospitals, factories, and other industrial sectors less affected by U.S. restrictions. The ruling sets the stage for a high-profile legal battle as Huawei confronts the serious allegations in the U.S. federal court.