Huawei US trial commences over Iran business dealings

China’s largest telecom-gear maker Huawei Technologies had its criminal case open to jury selection yesterday before a Brooklyn federal jury, with charges of racketeering, bank fraud, and sanctions tied to its business in Iran. The legal tussle comes in the middle of the widening technology dispute between Washington and Beijing, weeks before Xi Jinping and Donald Trump are due to meet.

The trial is being overseen by U.S. District Judge Ann Donnelly and could last about three months, according to Reuters. Prosecutors have brought multiple charges in the indictment that go beyond a single sanctions violation, while Huawei has pleaded not guilty to all counts.

Prospective jurors were quizzed using 27-page questionnaires that asked, among other things, how they viewed both governments in Beijing and Tehran. Part of the proceedings could also overlap with a September 24 meeting between Xi and Trump in Washington.

Skycom and Huawei connection

The US government’s theory revolves around Skycom, a Hong Kong company that prosecutors believe Huawei used as a front. Through this company, the tech firm is alleged to have bought embargoed American goods and technology for its Iranian operations and moved money out of Iran via the global banking system. Court documents describe a 2010 offer where Skycom pitched at least 1.3 million euros of Hewlett-Packard equipment, a product covered by the embargo, to Iran’s biggest mobile carrier.

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