A US judge has denied Huawei Technologies’ motion to dismiss most charges in a federal indictment alleging the company stole trade secrets and misled banks about its business dealings in Iran.

The ruling, issued on July 1, 2025, by US District Judge Ann Donnelly in Brooklyn, upholds the majority of the 16-count indictment against the Chinese telecommunications firm.

The indictment claims that Huawei engaged in racketeering, stole trade secrets from six US companies, and committed bank fraud.

It also connects Huawei to Skycom, a Hong Kong company accused of violating US sanctions by conducting business in Iran.

Prosecutors assert that Skycom acted as an Iranian subsidiary of Huawei and received over US$100 million in transfers through the US financial system.

Huawei has pleaded not guilty and sought to dismiss 13 of the charges, asserting it was unfairly targeted. A trial is set for May 4, 2026, and is expected to last several months.

The case is US. v. Huawei Technologies Co. et al, in the US District Court for the Eastern District of New York, No. 18-cr-00457.

🔗 Source: Reuters

🧠 Food for thought

1️⃣ Economic espionage cases reveal substantial financial and strategic costs

The Huawei case represents just one high-profile example in a pattern of intellectual property theft that costs the U.S. economy between $225 billion to $600 billion annually according to reported estimates1.

The significant financial impact of such cases is illustrated by Sinovel Wind Group’s theft of trade secrets from American Superconductor Corporation (AMSC), which resulted in losses exceeding $550 million and the elimination of nearly 700 jobs2.

These cases typically involve sophisticated operations targeting high-value sectors including aerospace, pharmaceuticals, and technology, demonstrating a strategic approach to acquiring competitive advantages without the associated R&D investments3.

The U.S. government’s persistent pursuit of the Huawei case, despite the termination of the broader China Initiative, indicates the perceived severity of the alleged violations and their potential impact on American companies and national security.

2️⃣ The China Initiative’s complex legacy shapes current enforcement approach

Huawei’s case began during the Trump administration’s China Initiative in 2018, a program specifically designed to combat economic espionage and intellectual property theft attributed to Chinese entities4.