Huawei was placed on the US Entity List a few years ago, effectively banning the company from doing business with US companies. If you thought that was the end of it, think again. According to a ruling by US District Judge Ann Donnelly in Brooklyn, Huawei needs to face criminal charges in the US.
Huawei faces criminal charges in the US
So, how did Huawei land itself in this predicament? Huawei had previously attempted to dismiss a federal indictment that accused the company of trying to steal technology secrets from its US rivals. It also accused Huawei of misleading banks about its work in Iran.
This stemmed from Huawei’s alleged control of a Hong Kong-based company called Skycom. US prosecutors had argued that Skycom acted as Huawei’s Iranian subsidiary and transferred more than $100 million through the US financial system. Huawei attempted to plead not guilty to 13 of the 16 counts.
However, Donnelly found sufficient allegations that Huawei engaged in racketeering in its bid to grow its brand. She also found enough allegations that Huawei might have been involved in stealing trade secrets and committing bank fraud. This means that Huawei needs to face these criminal charges in the US courts. A trial is currently scheduled for May 4, 2026. Huawei has yet to respond to the ruling.
Huawei’s fight against the US government
Huawei used to be viewed as the underdog in the world of consumer tech. The company had long been the supplier of communications equipment to telcos around the world. However, Huawei later dipped its toes in the smartphone space where it quickly rose to fame.
In fact, before being placed on the US Entity List, Huawei was poised to overtake both Apple and Samsung. The company’s dreams soon came crashing down, and almost overnight, nearly vanished from the market. However, Huawei has a strong base in China and some parts of Asia, where the company’s phones are popular due to being good value for money.
The company has since managed to claw its way back. Despite the sanctions against it, Huawei has proved its detractors wrong. Together with SMIC, Huawei has managed to produce relatively modern chipsets and developed its own mobile platform, HarmonyOS, which will be used to power its phones, tablets, and other electronics.
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