Published: Fri, March 08, 2019
Markets | By Erika Turner

Huawei sues United States government over federal ban on its equipment

Huawei sues United States government over federal ban on its equipment

Peck said abuse of process motions will likely be brought. Huawei claims the USA has denied its "due process of law".

Only 30 per cent of Huawei's equipment comes directly from Huawei, he said, while the rest comes from the global supply chain.

"I guess Trump could order the Justice Dept to dismiss the indictment, but that would be unprecedented", Henning said. The suit was filed in a Texas court on Wednesday. The company's complaint argues that the law violates the U.S. Constitution.

Huawei has responded with an aggressive PR campaign to counter the United States warnings, with reclusive founder Ren Zhengfei denying the fears in a series of foreign media interviews.

Vodafone UK decided against using Chinese technology in the higher risk parts of its network more than five years ago, he added. "We are compelled to take this legal action as a proper and last resort".

At a press conference Thursday with top executives and its US -based lawyers, Huawei said the ban infringed on its rights and represented an instance of legislative overreach.

Huawei has pleaded not guilty to US trade-theft charges unsealed by a federal court in Seattle in January.

The company's CFO Meng Wanzhou was arrested in Canada in December on suspicion of activity violating US sanctions against Iran. She is fighting extradition to the United States.

The Chinese government said Washington fabricates or exaggerates security concerns to block competition.

On the other hand, a Chinese-owned company called Ralls Corp successfully sued the Obama administration for blocking its attempt to build wind turbines near an OR military site.

Guo Ping also said that the USA government has been smearing Huawei as a threat, attacking its servers, stealing its mail and source code, and never provides any evidence to support its allegations that Huawei poses a cybersecurity threat.

The ban is "based on numerous false, unproven and untested propositions", the company's chief legal officer, Song Liuping, said at the news conference. This will work in Huawei's favor, as the government doesn't have any hard evidence to support its claims that the firm is a security threat. "No contrary evidence has been offered". Recipients of federal loans or other benefits also could not spend the funds they received on Huawei products.

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While Huawei had very little market share in the U.S. telecoms market before the bill, it viewed Section 889 as a stumbling block to addressing broader problems with Washington as its existence prevented any steps towards reconciliation. He noted Trump has said he opposes using "artificial security reasons" to exclude Huawei.

Chinese telecom manufacturer Huawei is suing the USA government, arguing Congress violated the Constitution when it banned government agencies from purchasing Huawei equipment.

Founded in 1987 by a former military engineer, Huawei overtook Ericsson in 2017 as the biggest global supplier of network gear.

Chinese telecoms equipment maker Huawei Technologies Co.

Estimates from industry sources show that allowing Huawei to compete would reduce the cost of wireless infrastructure by between 15% and 40%.

The NDAA bans the US Government from doing business with Huawei and compatriot peer ZTE Corp, or from doing business with any company that has equipment from the two firms as a "substantial or essential component" of their system.

The United States has, of course, pursued Huawei via other channels too, none of which are related to its fears of China-based surveillance. Meng is suing the Canadian government, its border agency and the national police force, saying they detained, searched and interrogated her before telling her she was under arrest.

The case had strained relations with China, which this week accused two arrested Canadians of stealing state secrets in a move widely seen as retribution for Meng's arrest.

The Canadian government approved extradition proceedings against Meng on March 1.

Some European officials and others cite a Chinese security law requiring companies to cooperate with intelligence agencies.

It claims that the USA is improperly targeting and punishing Huawei without giving the company the chance to argue its case and "damaging its reputation". Huawei has repeatedly denied the claims.

Britain and other countries were also retaliated against over meetings with the Tibetan spiritual leader the Dalai Lama, considered a risky separatist by Beijing.

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