A US federal court in Brooklyn has handed down a ruling that could significantly affect the course of the long-running criminal case against Huawei. Judge Ann Donnelly has ruled that statements made by Meng Wanzhou, the company’s chief financial officer, may be used as evidence during the trial against the Chinese firm.
The case concerns Huawei’s activities in Iran and allegations that the company misled banks regarding the nature of its operations. In 2021, Meng Wanzhou reached an agreement with the US justice system which allowed the proceedings against her to be concluded and enabled her to avoid extradition to the United States. As part of this agreement, she admitted to providing false information regarding Huawei’s relationship with Skycom, a company operating in Iran. According to the US authorities, this was intended to enable banks to continue processing transactions related to Huawei.
Huawei argued in court that Meng’s admission should not be used against the company itself. However, the judge rejected this argument, pointing out that Meng was and remains one of the company’s most senior executives, and that her actions were related to her role.
The case dates back to 2018, when Meng was detained in Canada at the request of the US. Her arrest sparked diplomatic tensions between the United States, China and Canada. After nearly three years under house arrest, she returned to China following a settlement with US prosecutors. In 2022, the charges against her were formally dropped.
The case against Huawei itself is still ongoing. In addition to the charges relating to Iran, the US authorities accuse the company of, amongst other things, bank fraud, sanctions violations and the theft of trade secrets. Huawei consistently denies any wrongdoing.
Although the company has been facing restrictions imposed by the US since 2019, it has managed to maintain a strong market position and expand its operations into new areas, such as automotive solutions and artificial intelligence. The jury trial is scheduled to begin in September, and the court’s decision boosts the prosecution’s chances of using one of the most important pieces of evidence.
