The ongoing criminal case between the U.S. Department of Justice and the Chinese tech giant Huawei has once again come under the spotlight. According to reports from The Wall Street Journal and Reuters, negotiations for a settlement have hit a snag, leading to a scheduled trial directly in January 2026.

At the hearing, the Assistant U.S. Attorney updated U.S. District Judge Ann Donnelly about the deadlock in settlement talks. Judge Donnelly then suggested starting the trial in early January 2026 because of this issue.

Prosecutors expect the trial to last between four to six months because the case is complex. Nonetheless, Huawei, represented by Douglas Axel, agreed with the proposed schedule before the trial.

This legal dispute started back in 2018 when the case initially surfaced with a sealed indictment. Among the accusations leveled against Huawei are allegations of misleading banks regarding business dealings in Iran, alongside other charges such as conspiracy to steal trade secrets.

A significant event in this case was when Huawei’s CFO, Sabrina Meng, was arrested in Canada in December 2018 at the request of the U.S. However, after 4 years, she was released in September 2021 after reaching an agreement with U.S. authorities, leading to the dropping of charges against her.

Huawei’s response to the legal proceedings includes an intention to file a motion seeking to split the case into two parts. This motion aims to separate fraud charges from trade secret-related charges, a move the US government opposes strongly. 

With negotiations stalled, all eyes are now on the upcoming trial.  Set to commence in January 2026, this case holds the potential to significantly impact the technology industry and reshape the global geopolitical dynamics between the United States and China.

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Huawei has been the most talked-about tech company, thanks to the simmering trade embargo slammed on the company by the US government. The company has continued to forge ahead, with an impressive H1 2019 phone shipments. The second half of the year is also looking promising with the Mate 30 series breaking barriers despite the US ban which ensured the sleek smartphone shipped with official Google Services.

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Huawei isn’t forgetting is staff who made wading through the stormy water looked easy.  The tech giant has disclosed that it will double the salaries of its over 190,000 employees in October to thank them for enduring the Trump administration’s blacklisting of the Chinese company for allegedly spying on behalf of the Chinese government.

An internal message to staff obtained by the Nikkei Asian Review read; “In 2019, the company and all employees were, and are, facing extraordinarily external challenges. Upon approval by the company’s president, a special dedication award will be paid.”

The memo also revealed that the bonus will be distributed to all active employees of Huawei and its direct subsidiaries with a performance rating above C and no information security violations. The bonus will be equal to each staff member’s basic October salary. Huawei presently has 194,000 employees spread across 170 countries.

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Just when we thought China’s trade dispute with the US which has affected tech giant Huawei was about to be resolved, China slammed a fresh set of tariffs on US goods taking both countries back to the trenches. Thus, Huawei is still caught up in the middle of what looks to be a long dispute. In the face of the dispute, Huawei has come out to accuse the US of carrying out cyberattacks, attempted entrapment, unlawful searches and more.

In a statement which was meant to refute separate charges that Huawei committed patent infringement, the Chinese company claims the US has “been using every tool at its disposal” including “unscrupulous means” to disrupt the business operations of Huawei and its partners. According to Huawei, the US has instructed law enforcement to “threaten, menace, coerce, entice, and incite” current and former Huawei employees.

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The company also claimed the US government has unlawfully searched, detained and arrested Huawei staff. The claims also include that the US sent FBI agents to employees’ homes, dug up old civil cases that have been settled and committed various other wrongdoings.

As if to corroborate some of the claims, an unnamed source disclosed to The Wall Street Journal that at least three employees from Huawei’s US office have been contacted by US law enforcement agencies this year. But WSJ points out that it’s not uncommon for FBI agents to visit current and former employees of a company that’s under investigation. Huawei is viewed as a national security concern and is under investigation on allegations of intellectual property theft. Late last month, the WSJ reported that the US Department of Justice probed Huawei over allegations that it stole intellectual property patented in the US, an accusation the company also denied in the press release.

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