Huawei is requesting the US federal court to discard a rule that prohibits the government subsidies from purchasing its equipment on the grounds of national security.
This lawsuit will serve as Huawei’s second legal challenge to the Trump administration as it continues to reduce its US market presence.
Huawei claims that the ban is unlawful. Citing that it is imposed against them and its rival ZTE on the grounds of national security. Moreover Huawei feels that US failed to substantiate claims they are indeed a threat, therefore a violation of due process.
The petition also states that the Federal Communications Commission acted improperly when it voted to forbid rural carriers from buying equipment from Huawei and ZTE.
Furthermore, the lawsuit expressed how FCC has excessively used its authority by making national security judgements, deeming Huawei as a national security threat without further evidence, violating its own set of rules without citing a legal basis.
Huawei’s chief legal officer, Song Liuping shares the same sentiments saying that there is no evidence for such claims, adding that the decision was purely based on political motives.
He also pointed out how politicians in the US say they are very concerned about cyber security but were banning Huawei for the sole reason that we are from China. Hence, such action does not solve any cyber security challenges.
They have consistently dismissed the security accusation, firm of it being baseless.
Huawei warned the FCC rule will hurt rural American carriers.
As of now, the potential loss in sales are minimal. But if the ruling will be allowed to sustain, Huawei might suffer reputational losses that will have a greater impact on the business.
In a lawsuit filed in March, Huawei is asking a federal court in Texas to dismiss the US government ban on purchasing its equipment or dealing with any contractor that does.
The Trump administration imposed curbs in It was in May when the Trump administration threatened to disrupt Huawei’s sales of smartphones and network gear by blocking access to US technology and components including Google’s music, maps and other mobile services.
Beijing’s Foreign Ministry spokeswoman Hua Chunying even questioned their standard of safety is citing if things are not safe because Chinese made it, how come Americans wear clothes and shoes made by them.
Huawei has become the world leader in telecom networking equipment and one of the top smartphone manufacturers. It reported its global sales US$86 billion.
In November, Huawei started selling a folding smartphone, the Mate X, made without US-supplied processor chips or Google apps.
