A federal judge on Friday dismissed financial fraud charges against Meng Wanzhou, Huawei’s chief financial officer.
Why is it important: The move ends a years-long dispute over the 2019 Justice Department indictment, which accused Meng of violating trade sanctions against Iran.
Driving the news: U.S. District Judge Ann Donnelly dismissed Meng’s indictment with prejudice, meaning it can no longer be brought to trial.
- Meng reached a deferred settlement with federal prosecutors last year in which she admitted making false statements about Huawei’s Iranian activities.
- The DOJ has agreed to dismiss all charges at the end of the deferral period as long as Meng is not charged with a crime during that period.
Our thought bubblevia Axios’ Hope King: The case has strained US-China relations, but its conclusion does not appear to impact the ongoing US crackdown on Chinese tech giants.
- Last week, the FCC passed new rules banning US sales and imports of new Huawei and ZTE equipment on national security grounds.
- TikTok, owned by Chinese parent company ByteDance, is currently in negotiations with CFIUS to remain operational in the United States.
The big picture: The DOJ alleged in its charges that Meng, daughter of Huawei’s founder, tried to evade sanctions by lying about Huawei’s ownership of Iranian company Skycom.
- Meng was arrested in Vancouver in 2018. The United States formally asked Canada to extradite Meng in 2019, but she remained there under house arrest until Donnelly approved her deferred deal with the United States.
- Meng returned home to Shenzhen the day he was approved. Shortly after, the Chinese government released two Canadians who had been imprisoned for more than 1,000 days, as well as two American siblings who had been banned from leaving China for three years.
Go further: Huawei arrest marks escalation in US-China fight over 5G