Huawei sues USA over security ban on firm's products

Huawei sues USA over security ban on firm's products

Huawei sues USA over security ban on firm's products

Huawei Technologies Ltd.'s lawsuit, announced Thursday, asks a USA court to reject as unconstitutional a military-spending provision that bars the US government and its contractors from using Huawei equipment. Instead, the USA government is driven by xenophobia and fear that Huawei's relationship with the Chinese government, which is normal in that country, will help that government spy on the U.S.

The company announced on Thursday that it filed suit in a district court in Plano, Texas to challenge the constitutionality of part of the National Defense Authorization Act. "But the truth is, restricting Huawei's contribution to American and other 5G networks will only harm their networks".

Huawei has responded with an aggressive PR campaign to counter the United States warnings, with reclusive founder Ren Zhengfei denying the claims in a series of foreign media interviews. "We are compelled to take this legal action as a proper and last resort".

In its lawsuit, Huawei said its "equipment and services are subject to advanced security procedures, and no backdoors, implants, or other intentional security vulnerabilities have been documented in any of the more than 170 countries in the world where Huawei equipment and services are used". Now, it's up to a federal court to consider the case.

The company's chief financial officer, Meng Wanzhou, is fighting extradition to the USA after she was arrested in Vancouver, Canada on December 1.

In January, the USA formally charged Meng and Huawei with bank and wire fraud related to business dealings in Iran. Huawei has repeatedly denied the claims.

At a routine briefing Thursday, a Chinese foreign ministry spokesman noted that the Chinese government has also objected to the law. He did not know if the government would join Huawei's lawsuit.

Huawei has about 40 per cent of the global market for network gear. The company's complaint argues that the law violates the U.S. Constitution. He complaining Washington was "sparing no effort to smear" the company.

Chinese telecom equipment maker Huawei Technologies suing the USA government over a law that restricts the use of its gear in American networks for security reasons, arguing it amounts to an abuse of process that damages its reputation as telecoms prepare to spend billions on 5G technology.

Last year, the Trump administration banned Chinese company ZTE Corp. from purchasing critical US technology for violating export sanctions against Iran and North Korea.

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"I don't see the USA backing away from these cases", said Peter Henning, a former federal prosecutor who is now a professor at Wayne State University Law School in Detroit.

The ban is "based on numerous false, unproven and untested propositions", the company's chief legal officer, Song Liuping, said at the news conference.

In September 2017, the U.S. Department of Homeland Security directed agencies to stop using Kaspersky's anti-virus software based on concerns the Russian government could use the programs to spy on federal information systems. "No contrary evidence has been offered", he said.

Vodafone said last month it had paused the use of Huawei components in its core networks in Europe until governments had assessed the risks. Industry analysts say excluding the Chinese vendor from markets for 5G equipment would reduce competition and might lead to higher prices.

A week later at the Mobile World Congress, where Huawei unveiled the world's most expensive foldable phone, Rotating Chairman Guo Ping opened his speech with a jab at the United States.

Another major front of Huawei's counter-attack against the United States government has been opened in the form of a lawsuit claiming the imposition unconstitutional sales restrictions. Some carriers, including Telus Corp., have said a Huawei ban could delay the roll out of 5G networks. The communist state this week also 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.

Guo later said the United States wanted to thwart Huawei's rise as it "hampers U.S. efforts to spy on whomever it wants".

Lawmakers said they feared that Huawei's equipment could be compromised by the Chinese government and thus constituted a national security risk.

Others, including Britain, Canada and Germany, are still weighing a decision.

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