Huawei Sues US Government Over Its National Defense Laws
- Jon Butler
It comes as the biggest global maker of network gear fights a US campaign to persuade allies to shun Huawei.
"It is not likely to result in Huawei gaining new access to the USA market, but it is a symbolic marker that could influence other players around the world considering potential limitations or bans against the firm", he predicted.
According to the complaint, Huawei views Section 889 as a roadblock to it gaining more market share in the US telecoms market.
It says the law causes the company "concrete and particularized injury, and imminent future injury" and subjects it to a "burden that is severe, permanent and inescapable" that amounts to the corporate "death penalty".
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The case had strained both Canadian and US relations with China.
Vodafone UK decided against using Chinese technology in the higher risk parts of its network more than five years ago, he added. The company has spent years trying to put to rest accusations it facilitates Chinese spying or is controlled by the ruling Communist Party.
Increasingly, both sides appear to be resorting to courts to try to press their cases.
"This ban is not only unlawful but also harms both Huawei and USA consumers", Huawei's rotating chairman, Guo Ping, told reporters at news conference in Shenzhen on Thursday.
The bill that bans Huawei, signed by jobbing TV actor Donald Trump, best known for his appearance as "Waldo's Dad" in a 1994 episode of The Little Rascals, is the same one that brought ZTE to the edge of bankruptcy, before a "deal" allowed them to keep trading in return for a $1bn payment to the US Treasury.
Assuming the case proceeds, we won't know how this turns out for quite some time. The charges include conspiracy to steal trade secrets, attempted theft of trade secrets, wire fraud and obstruction of justice.
Separately, Meng, who is fighting extradition, is suing Canada's government for procedural wrongs in her arrest.
At the same time, Huawei's Chief Financial Officer Meng Wanzhou, who is Ren's daughter, faces potential extradition from Canada to the USA over charges of violating Iran sanctions. Huawei denies any wrongdoing. "It has never asked and will not ask Chinese companies to do anything against foreign laws and regulations".
"We believe that it is perfectly proper and fully understandable for companies to defend their legitimate rights and interests through legal means", Lu Kang said.
He stressed that Huawei equipment was not being used in sensitive parts of the 5G network, which Vodafone plans to start rolling out later this year.
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Huawei has about 40 percent of the global market for network gear.
Huawei says the U.S. government has failed to provide evidence to support the ban, and rejected claims of links to the Chinese government. He complaining Washington was "sparing no effort to smear" the company.
Chinese telecoms equipment maker Huawei Technologies sued the USA government on Thursday saying a law limiting its US business was unconstitutional, ratcheting up its fight back against a government bent on closing it out of global markets. The United States accounts for 20 to 25 per cent of the global market for computer and telecom technology.
The U.S. government had barred federal agencies from using Kaspersky's anti-virus products because of concerns about its ties to the Kremlin and Russian spy operations.
The ban is "based on numerous false, unproven and untested propositions", said Song Liuping, the company's chief legal officer, at the news conference.
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. "No contrary evidence has been offered". Huawei argues the law abuses due process by singling out Huawei with the implication it's a tool of the Chinese government and therefore a security risk.
Based in Shenzhen, near Hong Kong, Huawei is a leading developer of 5G along with rivals Nokia of Finland and Sweden's LM Ericsson. He also said it would delay the release of 5G communications.
Huawei, founded in 1987 by a former military engineer, overtook Ericsson in 2017 as the biggest global supplier of network gear.
Amid security concerns and pressure from the US, the British government is now reviewing whether Huawei should participate in the rollout of 5G.
Huawei may figure the potential benefits in terms of public opinion are worth a legal fight, no matter what the outcome.
China's government arrested two Canadians, a former diplomat and a businessman, on December 10 in what was widely seen as an attempt to pressure Canada to release Meng, the company's CFO.
The case strained Canada's relations with China, which this week accused two arrested Canadians of stealing state secrets and blocked Canadian canola imports. That followed the Canadian government's announcement Friday that the extradition proceeding for Meng would be allowed to continue.
Berlin will not pre-emptively ban any specific companies from bidding for contracts to develop the country's next generation 5G mobile network, despite enormous pressure from the United States to ostracize Huawei, Peter Altmaier said on Thursday evening, during a debate on ZDF television.
Huawei denies altering its equipment to facilitate spying.
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