Huawei sues U.S. government over equipment ban

Posted March 08, 2019

In its USA case, Huawei is taking aim at a provision in the 2019 National Defense Authorization Act.

Huawei Technologies Ltd. announced the legal action on Thursday.

Huawei is playing a risky game.

"This ban not only is unlawful but also restricts Huawei from engaging in fair competition, ultimately harming U.S. consumers", Huawei's Rotating Chairman Guo Ping said in the statement.

Huawei said it hopes the USA removes this section so it can work with the US and President Donald Trump. In doing so, the US Congress has acted as judge, jury, and executioner, without even taking the company to court, Huawei says.

Huawei's chief legal officer, Song Liuping, said the two cases were different in terms of evidence and scope, and that the Chinese firm's case had "full merits". Contrary to the statute's premise, Huawei is not owned, controlled, or influenced by the Chinese government.

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Huawei is a focus of USA security concerns.

Guo said that Huawei was left with no choice but to take legal action, noting that neither lawmakers nor the government had shown any proof to date to back up concerns the company is a security concern. "Huawei's approach to security by design development and deployment sets a high standards bar that few can match". Huawei is included in that.

Huawei's equipment is seen as considerably more advanced than that of competitors such as Sweden's Ericsson or Finland's Nokia. If it wanted to it could mention that some United States networking vendors don't exactly have a spotless security record themselves, or that the USA has been suspected of similar nefarious acts to those it accuses China of perpetrating.

The company's aggressive response to the criminal charges may reflect a desire to both circumvent the USA justice system and combat claims that threaten billions of dollars in sales outside of China, said Alexander Capri, a visiting senior fellow at the National University of Singapore Business School.

In other words, Huawei devices can be used for espionage. She was arrested by Canada at the request of the US, where she is wanted on fraud charges for allegedly misleading banks about the company's dealings with Iran. It has hacked our servers and stolen our emails and source code.

Huawei says that violates the U.S. Constitution, arguing in its suit that it's been denied due process since it's had no opportunity in court to fight the government's allegations.

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Andy Purdy, the chief security officer for Huawei's USA business, defended the company in an interview with Cheddar in January, saying that "no government has ever asked us to spy" and calling the accusations part of a "drumbeat of anti-Huawei criticism".

The U.S. campaign to persuade allies to shun Huawei threatens to block access to major markets as phone carriers prepare to invest billions of dollars in 5G systems.

Among the enforcement actions being targeted were efforts by China to gain access to proprietary US technology and trade secrets, through techniques such as computer hacking or theft by insiders.

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The company is seeking "a declaratory judgment that the restrictions targeting Huawei are unconstitutional and a permanent injunction against these restrictions", the company said. Its attack on Huawei is purposeful and punitive.

But Schwinn said the lawsuit is one of Huawei's only remaining options, short of trying to get Congress to reverse the ban.

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