YOU ARE AT:5GHuawei files legal claim against US government sales ban

Huawei files legal claim against US government sales ban

The Chinese vendor said the U.S. failed to provide evidence to support the ban

Chinese vendor Huawei has filed a legal complaint in a U.S. federal court that challenges the constitutionality of a ban on U.S. government agencies using its equipment and seeking a permanent injunction against the restriction.

“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,” Guo Ping, Huawei rotating chairman, said during a press conference at the company’s headquarters in Shenzhen, China.

“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, and trust that it will benefit both Huawei and the American people.”

In August 2018, U.S. President Donald Trump signed the National Defense Authorization Act, or NDAA, which included new regulations that ban government agencies doing business with Chinese vendors Huawei and ZTE.

The bill prohibits the U.S. government and its contractors from buying certain telecommunications and video surveillance equipment from Huawei, ZTE and other Chinese communications companies. The ban covers components and services deemed “essential” or “critical” to any government system.

Huawei said that the lawsuit was filed in a U.S. District Court in Plano, Texas, where the vendor has its U.S. headquarters.

According to the legal complaint, Section 889 of the 2019 NDAA not only bars all U.S. Government agencies from buying Huawei equipment and services, but also bars them from contracting with or awarding grants or loans to third parties who buy Huawei equipment or services, without any executive or judicial process.

The vendor highlighted that this ban violates the company’s due process and the separation-of-powers principles enshrined in the US constitution. The federal court has 60 days to respond to the legal action.

Ping also highlighted that the U.S. government has never provided any evidence supporting their accusations that Huawei poses a cyber security threat and that the Trump Administration is trying to block Huawei from competition in 5G contracts in other countries.

Song Liuping, Huawei’s Chief Legal Officer, said, “Section 889 is based on numerous false, unproven, and untested propositions. Contrary to the statute’s premise, Huawei is not owned, controlled, or influenced by the Chinese government. Moreover, Huawei has an excellent security record and program. No contrary evidence has been offered.”

“Huawei has never had a fair chance to confront or cross-examine its accusers. Nor has it been allowed an impartial adjudicator. The U.S. Congress has simply acted as law-maker, prosecutor, and jury at the same time, contrary to the American Constitution. Section 889 is unconstitutional in its singling out of Huawei by name, blacklisting it, damaging its reputation, and denying it any way to clear its name and escape sanction,” he added.

Yang Chaobin, president of Huawei’s 5G product line said that excluding Huawei from competition in the U.S. market will lead to higher network construction costs for local carriers.

“If this law is set aside, as it should be, Huawei can bring more advanced technologies to the United States and help it build the best 5G networks. Huawei is willing to address the U.S. Government’s security concerns. Lifting the NDAA ban will give the U.S. Government the flexibility it needs to work with Huawei and solve real security issues,” Guo Ping added.

According to recent press reports, the Trump administration has an executive order in the works that would ban the use of equipment from Chinese vendors in U.S. telecom networks.

 

ABOUT AUTHOR

Juan Pedro Tomás
Juan Pedro covers Global Carriers and Global Enterprise IoT. Prior to RCR, Juan Pedro worked for Business News Americas, covering telecoms and IT news in the Latin American markets. He also worked for Telecompaper as their Regional Editor for Latin America and Asia/Pacific. Juan Pedro has also contributed to Latin Trade magazine as the publication's correspondent in Argentina and with political risk consultancy firm Exclusive Analysis, writing reports and providing political and economic information from certain Latin American markets. He has a degree in International Relations and a master in Journalism and is married with two kids.

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