China has strongly objected to the start of a criminal trial in the U.S. involving Chinese tech giant Huawei over allegations including fraud and theft of trade secrets, describing the case as U.S. suppression of a Chinese company. Beijing also said it supports efforts to safeguard the legitimate rights and interests of Chinese companies, effectively accusing Washington of overreaching in its handling of the case.

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Huawei Vice Chair Meng Wanzhou, who went on trial in the U.S. on Sept. 8 local time, seven years after the case began. / Global Times

Chinese Foreign Ministry spokesperson Guo Jiakun said at a regular press briefing on Sept. 10 that “the Chinese government firmly opposes the U.S. suppression and containment of Chinese companies” when asked about the Huawei trial.

“China firmly supports Chinese companies in safeguarding their legitimate and lawful rights and interests,” Guo said. However, his lack of further substantive comments suggests Beijing intends to closely watch how the trial proceeds.

According to Beijing diplomatic sources familiar with U.S.-China relations, citing Reuters and other foreign media reports, the U.S. District Court in Brooklyn, New York, began proceedings in the Huawei criminal case on Sept. 8 local time. U.S. prosecutors indicted the company in 2019, meaning the case has reached trial seven years later.

The timing of the trial is also notable, coming shortly before a U.S.-China summit scheduled for Sept. 24. The case could potentially become another variable affecting the talks.

Huawei, which Beijing has strongly supported as a key pillar of China’s advanced technology development, faces allegations including deceiving banks such as HSBC over its business activities in sanctions-hit Iran and conspiring to steal trade secrets from five U.S. technology companies.

The company also faces allegations that it made false statements regarding business dealings with North Korea, supplied equipment to the Iranian government that could be used to track protesters during anti-government demonstrations in Tehran in 2009, and engaged in money laundering, organized criminal activity, wire fraud and obstruction of justice. U.S. prosecutors have brought a total of 14 criminal charges against Huawei.

If Huawei is found guilty, it could face substantial fines and the forfeiture of proceeds linked to the alleged offenses. Such an outcome could further strain U.S.-China relations regardless of the results of the upcoming summit.

The case first drew international attention in 2018 when Meng Wanzhou, Huawei Vice Chair and Chief Financial Officer and the daughter of company founder Ren Zhengfei, was arrested in Vancouver, Canada.

Her arrest came on the same day that U.S. President Donald Trump, then serving his first term, and Chinese President Xi Jinping, also general secretary of the Communist Party of China, met in Argentina during their trade war and agreed to a 90-day truce, drawing intense international attention to the case.

Following her arrest, Meng remained under house arrest at her residence in Canada for more than two years until 2021. Relations between China and the U.S. and Canada deteriorated sharply during that period.

The U.S. subsequently concluded that China could use Huawei equipment for espionage and effectively pushed the company out of the U.S. market. Washington also pressured other countries to exclude Huawei equipment from their telecommunications networks.

China responded after Meng’s arrest by detaining two Canadian nationals, a move widely criticized in the West as retaliation. The U.S. eventually allowed Meng to return to China after she signed a statement acknowledging that she had made false representations to U.S. financial institutions regarding Huawei’s activities. Washington, however, continued pursuing criminal proceedings against both Huawei and Meng.

                                                                                                          Hong Soon-do