Huawei heads to trial in US over alleged business dealings in Iran

Huawei Technologies, the world’s largest telecom equipment maker, is heading to trial in Brooklyn federal court on September 8, 2026, facing a sweeping indictment that alleges the company used a shell entity to conduct business in Iran in violation of US sanctions. The case, which covers alleged conduct spanning from 1999 to 2020, represents one of the most significant corporate criminal prosecutions to emerge from the long-running US-China technology standoff.

The timing is hard to ignore. The trial is set to unfold just as US President Donald Trump and Chinese President Xi Jinping are meeting, turning an already high-stakes courtroom drama into a potential flashpoint for bilateral relations.

What Huawei is accused of

At the core of the government’s case is Skycom, a Hong Kong-based entity that prosecutors say functioned as a front company for Huawei’s operations in Iran. According to the indictment, Skycom routed over $100 million in transactions through US banks, effectively using the American financial system to facilitate business that sanctions were designed to prevent.

The allegations don’t stop at sanctions evasion. Prosecutors say Skycom helped supply embargoed equipment worth at least 1.3 million euros (roughly $1.5 million) to an Iranian mobile operator in 2010. Huawei allegedly misled banks, including HSBC, about Skycom’s true nature and its connection to the parent company.

Then there’s the more incendiary charge: that Huawei supplied surveillance equipment to Iranian authorities during the country’s civil unrest in 2009. If proven, that allegation would paint the company not just as a sanctions violator but as a willing participant in government repression.

The full indictment includes charges of conspiracy to steal trade secrets from US firms, bank fraud, wire fraud, money laundering, and obstruction. The indictment was originally filed under seal. In July 2025, Judge Ann Donnelly denied Huawei’s motion to dismiss most of the charges, clearing the path for a trial that is expected to last over three months.

The Meng Wanzhou connection

Meng Wanzhou, Huawei’s former chief financial officer and the daughter of founder Ren Zhengfei, reached a deferred prosecution agreement with US authorities in 2021. As part of that deal, she admitted to making false statements regarding Huawei’s compliance with US laws.

Meng’s arrest in Vancouver in December 2018 triggered a diplomatic crisis between Canada, the US, and China that lasted nearly three years. A recent court ruling allows prosecutors to use Meng’s admissions as evidence against Huawei itself.

Huawei has denied all charges and characterized the prosecution as US economic bullying.

The bigger picture: US-China tech decoupling

Huawei was added to the US Entity List in 2019 based on its alleged Iran-related conduct, effectively cutting the company off from American suppliers and technology. The legal troubles for Huawei trace back to investigative reports by Reuters in 2012 and 2013, which illuminated the connections between Huawei and Skycom Tech Co. Ltd. Allegations suggest that Huawei treated Skycom as an unofficial subsidiary, enabling it to acquire goods, technology, and banking services from the US for operations in Iran while obscuring this relationship from oversight authorities and financial institutions.