Story perspectives

Huawei racketeering trial begins after not-guilty plea

9/10/2026

Summary

Story summary

District Judge Ann Donnelly presided as Huawei began a racketeering trial in Brooklyn, New York.
Huawei pleaded not guilty to 16 counts.
Prosecutors allege Huawei used Hong-Kong shell Skycom to sell equipment to Iran, violating U.S. sanctions.
The indictment says Huawei did business in North Korea and installed surveillance gear that helped Iran monitor 2009 protesters.
A judge allowed Meng Wanzhou’s deferred-prosecution admissions as evidence, projecting a three-month trial.

History

Historical Context

In 2017, ZTE settled U.S. sanctions charges, paying a $1.19 billion fine after the Justice Department accused it of illegal sales to Iran and North Korea. The deal forced ZTE to forfeit $400 million, undergo a 90-day compliance audit, and barred U.S. component sales for twelve months. Today, a Brooklyn racketeering trial accuses Huawei of using Hong-Kong shell Skycom to evade sanctions, mirroring ZTE’s prohibited Iran and North Korea transactions. These repeat breaches push Washington to tighten export controls, with Congress debating amendments to the International Emergency Economic Powers Act.

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Story summary

District Judge Ann Donnelly presided as Huawei began a racketeering trial in Brooklyn, New York.
Huawei pleaded not guilty to 16 counts.
Prosecutors allege Huawei used Hong-Kong shell Skycom to sell equipment to Iran, violating U.S. sanctions.
The indictment says Huawei did business in North Korea and installed surveillance gear that helped Iran monitor 2009 protesters.
A judge allowed Meng Wanzhou’s deferred-prosecution admissions as evidence, projecting a three-month trial.

1 / 2