China’s Huawei sues US over ban on using its products

Chinese telecom giant Huawei said on Thursday it was suing the United States for barring government agencies from buying the telecom company’s equipment and services.

The lawsuit is Huawei’s latest attempt to fight back against US warnings that the company could serve as a Trojan horse for China’s intelligence services.

“The US Congress has repeatedly failed to produce any evidence to support its restrictions on Huawei products. We are compelled to take this legal action as a proper and last resort,” Huawei’s Chairman Guo Ping said at a press conference in Shengzen.

“Huawei has always taken its responsibilities seriously,” he added.

The company said the US acted illegally by enacting a law that forbids the government from doing business with companies that use Huawei equipment as a “substantial or essential component” of their system.

The lawsuit was filed in the US District Court for the Eastern District of Texas.

Huawei also accused the US of hacking its servers and stealing emails.

The privately owned firm has embarked on a public relations and legal offensive over the past two months as Washington lobbies allies to abandon Huawei when building fifth-generation (5G) mobile networks, centring on a 2017 Chinese law requiring companies cooperate with national intelligence work.

Thursday’s move challenges Section 889 of the National Defense Authorization Act (NDAA), a section signed into law by the US President Donald Trump in August that banned federal agencies and their contractors from procuring its equipment and services.

“This ban not only is unlawful but also restricts Huawei from engaging in fair competition, ultimately harming US consumers. We look forward to the court’s verdict, and trust that it will benefit both Huawei and the American people,” said Guo.

Making arrests

The US-China dispute has intensified in recent months.

Huawei’s Chief Financial Officer Meng Wanzhou faces potential extradition from Canada where she was arrested to the United States over charges of Iran sanctions violations.

The US Justice Department accuses Huawei and Meng of circumventing US sanctions against Iran. Two affiliates also have been charged with stealing trade secrets from telecommunications group T-Mobile.

Meng faces a May 8 hearing in Vancouver, where she was arrested while changing planes.

Two Canadians have been detained in China in suspected retaliation over her arrest.