U.S. Judge Denies Huawei’s Motion to Dismiss Trade Secret Theft Case

A federal judge in Brooklyn has cleared the way for a high-stakes trial against Huawei Technologies, rejecting the Chinese firm's bid to dismiss charges of trade secret theft, bank fraud, and sanctions violations. The case, set for trial in May 2026, alleges a years-long scheme involving covert Iranian transactions and intellectual property theft from six American companies.

Prosecutors maintain Huawei used Hong Kong-based Skycom Tech as a front to conduct over $100 million in prohibited Iranian business through U.S. financial institutions. Court documents depict Skycom operating as Huawei's de facto subsidiary in Iran while concealing the relationship from banks and regulators.

The ruling underscores continued U.S. legal pressure on Huawei despite the winding down of the China Initiative. Judge Ann Donnelly found prosecutors presented sufficient evidence to proceed with most of the 16-count indictment, including claims Huawei systematically pilfered proprietary technology from U.S. tech firms.