Huawei CFO's Admissions Can Be Used in US Criminal Trial, Judge Rules

The Ruling and Its Implications

A top Huawei executive's admission that the Chinese telecom company illegally conducted business in Iran can be used in the upcoming US trial against Huawei, a US judge has ruled.

The ruling was filed in Brooklyn federal court on Tuesday. The company's chief financial officer, Meng Wanzhou, made the admission as part of a 2021 deal to dismiss the criminal charges she faced in the case.

Meng's Admission and Huawei's Argument

Meng had been accused of bank fraud in the US in connection with violating sanctions on Iran. In a four-page statement of facts, Meng acknowledged lying to a financial institution about Huawei's compliance with sanctions and export control law.

Huawei argued that prosecutors could not use Meng's admission against it because the company was entitled to remain silent despite her statement. However, US District Judge Ann Donnelly rejected this argument.

The Impact on the Trial

Donnelly wrote that Meng was — and is still — Huawei Tech's CFO, and that Huawei Tech should not be able to object that admitting the statement of its senior executive about her conduct in connection with her job — which Huawei Tech adopted — violates Huawei Tech's rights.

The judge also said it was unnecessary for Huawei to question her at trial. A Huawei spokesperson did not immediately respond to a request for comment.

Background and Context

Meng, whose father, Ren Zhengfei, founded Huawei, made worldwide headlines in 2018 when she was arrested on a US warrant after landing in Vancouver, straining both US-China and China-Canada relations.

The warrant was filed after a sealed indictment accused her and the company of bank fraud for misleading HSBC and other banks about Huawei's business in Iran.

The Trial and Future Outlook

Meng spent nearly three years under house arrest in a six-bedroom, multimillion-dollar Canadian home as she fought extradition to the US. In an unusual resolution during the pandemic, she was allowed to appear in court remotely from Vancouver in September 2021 to enter into a deferred prosecution agreement before flying to China for a hero's welcome.

The trial is set for jury selection on September 8. Since 2019, the US has restricted Huawei's access to US technology, accusing the company of activities contrary to US national security, which Huawei denies.