NEW YORK, July 1 (Reuters) - A U.S. judge on Tuesday

rejected Huawei Technologies' bid to dismiss most of a federal

indictment accusing the Chinese telecommunications company of

trying to steal technology secrets from U.S. rivals, and

misleading banks about its work in Iran.

In a 52-page decision, U.S. District Judge Ann Donnelly in

Brooklyn found sufficient allegations in the 16-count indictment

that Huawei engaged in racketeering to expand its brand, stole

trade secrets from six companies, and committed bank fraud.

The Iran accusations stemmed from Huawei's alleged control

of Skycom, a Hong Kong company that did business in that

country.

Donnelly said prosecutors satisfactorily alleged Skycom

"operated as Huawei's Iranian subsidiary and ultimately stood to

benefit, in a roundabout way," from more than $100 million of

money transfers through the U.S. financial system.

Huawei has pleaded not guilty and had sought to dismiss 13

of the 16 counts, calling itself "a prosecutorial target in

search of a crime."

A trial is scheduled for May 4, 2026, and could last several

months.

Neither Huawei nor its lawyers immediately responded to

requests for comment. A spokesperson for Interim U.S. Attorney

Joseph Nocella in Brooklyn declined to comment.

The criminal case began during U.S. President Donald Trump's

first term in 2018, the same year the Department of Justice

launched its China Initiative to address Beijing's alleged theft

of intellectual property.

Huawei Chief Financial Officer Meng Wanzhou, whose father

founded the company, had been a defendant, and was detained in

Canada for nearly three years before being allowed to return to

China. Charges against her were dismissed in 2022.

In 2022, President Joe Biden's administration scrapped the

China Initiative, after critics said it amounted to racial

profiling and caused fear that chilled scientific research.

Based in Shenzhen, Huawei operates in more than 170

countries and has about 208,000 employees.

The U.S. government has restricted Huawei's access to

American technology since 2019, citing national security

concerns. Huawei denies it is a threat.

The case is U.S. v. Huawei Technologies Co et al, U.S.

District Court, Eastern District of New York, No. 18-cr-00457.