Huawei faces 2026 trial date in ongoing criminal case in US

Criminal case against Huawei: The criminal case brought forth by the US Justice Department against China's Huawei, alleging misconduct including misleading banks regarding business dealings in Iran, is scheduled for trial in January 2026, following failed settlement discussions.

During a status conference in Brooklyn, New York, Assistant US Attorney Alexander Solomon informed US District Judge Ann Donnelly of the impasse in settlement talks, advocating for the setting of a trial date. Judge Donnelly suggested January 2026 as a suitable starting point for the trial.

Initiated in 2018 with a sealed indictment, the case garnered international attention, particularly due to the detention of Huawei CFO Meng Wanzhou in Canada on a US warrant. In a 2021 development, charges against Meng were dropped as part of an agreement, although the broader case against Huawei persists, with the company maintaining its plea of not guilty.

Request for bifurcation of case

Prosecutors anticipate the trial to span four to six months, with Huawei's lawyer, Douglas Axel, revealing a motion to bifurcate the case, aiming to separate bank fraud charges from allegations of trade secret theft. However, the government signalled opposition, asserting the interconnectedness of the charges.

Huawei's legal woes originated from 2018 indictments for bank fraud related to misleading banks about business in Iran, compounded by additional charges in 2020, including conspiracy to steal trade secrets and allegations of aiding Iran in surveilling protesters in 2009.

Meng's deferred prosecution agreement in September 2021, acknowledging false statements regarding Huawei's Iran dealings, marked a major development. Subsequently, following a virtual hearing, Meng was permitted to return to China from Canada, coinciding with the release of detained Canadians and the repatriation of American individuals held in China.

Amidst ongoing legal battles, Huawei has faced US restrictions since 2019, citing national security concerns, despite the company's denial of wrongdoing. Despite this, Huawei reported strong growth in 2023, driven by a resurgence in consumer segments and revenue from emerging ventures such as smart car components, reflecting a rebound from the constraints imposed by US sanctions.

(With Reuters inputs)