A US District Court in Brooklyn ruled to allow the government’s sweeping 16‑count indictment against Huawei Technologies Co., Ltd. to move forward on Tuesday, rejecting the Chinese telecommunications firm’s motion to dismiss 13 out of 16 federal charges.

US District Judge Ann Donnelly issued a 52‑page order on Monday ruling that the allegations, which include racketeering, bank and wire fraud, and trade‑secret theft, are plausible and sufficient to proceed.

Per the superseding indictment, Huawei and several affiliates allegedly conspired to mislead US banks regarding its business dealings in Iran through a Hong Kong‑based shell company called Skycom.

The indictment further accuses Huawei of appropriating intellectual property from six US firms to boost its competitive position globally.

Huawei challenged the indictment as overly vague, extraterritorial, and premature. However, Donnelly disagreed, finding the allegations legally sufficient to survive dismissal at this stage of litigation.

In her order, Donnelly stated that prosecutors properly alleged that Skycom “operated as Huawei’s Iranian subsidiary and ultimately stood to benefit, in a roundabout way,” funneling over $100 million into the US financial system and contravening sanctions.

Huawei called itself “a prosecutorial target in search of a crime” and pleaded not guilty to all counts.

Donnelly’s ruling reflects the Department of Justice’s intensified focus on Chinese corporate espionage and sanctions evasion, a campaign originally launched in 2018 under the “China Initiative.” Although the formal initiative has been terminated, its core objectives live on in this prosecution and Trump’s second term.

Huawei’s defense is poised to contest the indictment’s reach into extraterritorial conduct and procedural adequacy, raising novel legal questions under the racketeering and bank‑fraud statutes.

Donnelly’s decision sets a trial date for May 4, 2026, with proceedings expected to continue for several months.