Huawei is suing the US government

Huawei is suing the US government
# 07 March 2019 07:38 (UTC +04:00)

Embattled Chinese tech giant Huawei is suing the US government, challenging a law that bans federal agencies from buying the company's products, ONA reports citing CNN.

It's Huawei's most aggressive move yet to fight back against the Trump administration, which claims the smartphone and telecom equipment maker's technologies pose a global security threat.

The company said Thursday that it has filed a lawsuit asking a US federal court to overturn part of a provision in the National Defense Authorization Act, which was enacted in August. Huawei alleges that a portion of the law violates the US Constitution by singling out an individual or group for punishment without trial.

The legislation specifically forbids government agencies from using technology from Huawei and its smaller Chinese rival, ZTE (ZTCOF).

Huawei's court challenge takes its heated standoff with the US government to a new level.

The company is one of China's biggest tech firms and a key player in the global rollout of super-fast 5G wireless networks. Its smartphones compete globally with those of Apple (AAPL) and Samsung.

But Washington has for years been suspicious that the Chinese government could use Huawei equipment to spy on other nations, without providing specific evidence. Huawei describes itself as an employee-owned company and denies any of its products pose a security risk.

Huawei's lawsuit, which was filed in Texas, where the company's American headquarters are located, could force the US government to present a public case against the Chinese tech company as it ramps up its pressure campaign.

The Trump administration has been urging allies to ban or restrict Huawei products from their 5G networks, citing spying concerns but without providing clear evidence. That has complicated Huawei's ambitious plans for growth and prompted complaints from wireless carriers that it's disrupting their plans to build the networks.

Adding to the complexity, US prosecutors have filed criminal charges against Huawei in Washington state and New York.

Huawei pleaded not guilty in Seattle last week to charges that it tried to steal trade secrets from T-Mobile (TMUS).

The company's arraignment in Brooklyn on charges that it worked to skirt US sanctions on Iran is scheduled for later this month. Huawei's chief financial officer, Meng Wanzhou, has also been charged in that case. She was arrested in Canada in December and faces extradition to the United States.

Meng and Huawei have denied the charges.