Huawei Sues the US Government and Calls Ban Unconstitutional

The United States government has gone hard after Huawei over the past few months and banned the Chinese company from supplying telecom equipment for building networks in the country. However, that is not all. The US authorities went on to inform key allies that they should do the same since they believe that Huawei’s equipment is used as a spying tool by the Chinese government. In other words, in addition to the ban, the US government wants Huawei to be completely ostracised on a global level. Huawei has consistently maintained that the company is completely innocent and in a dramatic development on Thursday, they sued the US government for the ban. In its lawsuit, the Chinese tech giant stated that a law that restricts their right to do business in the US is unconstitutional.

The case was filed at a court in Texas, and it challenges a law that came into effect only in August last year. It pertains to section 889 of the National Defense Authorization Act (NDAA), and Huawei was banned on the basis of it. The law bars US Government agencies and contractors from using telecom equipment supplied by Huawei. The Chinese company has challenged the law that was turned into a law by US President Donald Trump. This marks the latest chapter in the escalation of tensions between the Huawei and the US Government.

The crackdown against Huawei came at the height of the trade war between the US and China, which is why it has often been pointed out by the company and Chinese authorities that the entire episode is political in nature. However, according to sources close the developments, the US security agencies had their eyes on Huawei for quite some time, and the crackdown could well be completely unrelated to the trade war.

Guo Ping, who is the Rotating Chairman at Huawei released a statement and stated that not only is the ban unlawful but the US Government has failed to produce any evidence that proves the company’s guilt.

He said, “The U.S. 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. This ban not only is unlawful but also restricts Huawei from engaging in fair competition, ultimately harming U.S. consumers. We look forward to the court’s verdict.”

Although a ban in the US does not hurt Huawei much, But it must be said that a ban in the country could hurt its business at a global level.

Copyright © 2019. FinanceOrange. All Rights Reserved.