The situation is heating up: Huawei sues the US government

Huawei has filed a lawsuit in US federal court, where it will seek to have Section 889 declared unconstitutional.

National Defense Appropriations (NDAA). It limits the sale of the Chinese giant's products in the American market and prevents the development of healthy competition, Huawei lawyers note.

What happened?

Article NDAA bans US government agencies not onlyacquire Huawei equipment and services, but also enter into contracts or provide grants / loans to third parties who purchase Huawei equipment themselves. And all this without the possibility of considering any executive or judicial process. The company claims that this violates the principle of separation of powers, established by the US Constitution, and also contradicts other articles of the current legislation.

Huawei has repeatedly been accused of spying onthe Chinese government, but the US has no evidence of such activities. Restrictions on the company's operations may delay the development of 5G networks, plus the suppression of competition will lead to higher prices. According to industry sources, if Huawei can fully operate in the market, the cost of wireless infrastructure will drop by 15-40%.

“Article No. 889 is based on numerous false,unverified and unconfirmed data. Contrary to speculation, Huawei is not owned, controlled or influenced by the Chinese government. Moreover, Huawei has an exceptional reputation and security program. No evidence to the contrary has been presented."

Song Liuping, Director of Legal Affairs at Huawei

The lawsuit was filed with the US District Court in Planostate of texas. In Huawei, this is called an extreme measure. Will companies succeed in making a decision in their favor? While forecasts are not too optimistic. At one time, Kaspersky Labs failed to challenge the ban on the use of its anti-virus products in US government agencies - the court rejected both of the developer’s response claims.

Huawei's problems don't end there. Last week, Canada announced the start of the extradition process of the arrested Meng Wanzhou, the financial director and daughter of the founder of Huawei.

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Huawei is suing the US government over unconstitutional sales restrictions imposed by Congress on the company 

Shenzhen, March 7, 2019– Huawei today announced that it has filed a lawsuit in US federal court challenging the constitutionality of Section 889 of the National Defense Authorization Act. of 2019 (NDAA). The company seeks a declaratory judgment regarding the unconstitutional restrictions imposed on Huawei, as well as an injunction against these restrictions.

"The US Congress has repeatedly refusedprovide any evidence to support these restrictions on Huawei products. We are forced to go to court as an appropriate and last resort – said Guo Ping, Chairman of the Board of Directors of Huawei. – This ban is not only illegal, but also restricts Huawei's right to engage in fair competition, which ultimately harms US consumers. We look forward to the court's decision and believe it will benefit both Huawei and the American people."

The lawsuit was filed in U.S. District Court in Plano.State of Texas. According to the statement of claim, Article No. 889 of the Law “On Budgetary Allocations for National Defense” of 2019 prohibits all U.S. government agencies from not only purchasing Huawei equipment and services, but also from entering into contracts, grants, or loans to third parties that purchase Huawei equipment or services, without the possibility of any enforcement or litigation. This is a violation of the provisions of the law “On deprivation of civil and property rights for high treason.” and the Due Process Clause. It also violates the principle of separation of powers established by the U.S. Constitution, since Congress simultaneously makes the law while attempting to adjudicate and administer justice.

Song Liuping, Legal DirectorHuawei, emphasized: “Article No. 889 is based on numerous false, unverified and unconfirmed data. Contrary to speculation, Huawei is not owned, controlled or influenced by the Chinese government. Moreover, Huawei has an exceptional reputation and security program. No evidence to the contrary has been presented."

“We are proud to be one ofthe most open and transparent companies in the world, – said John Suffolk, global chief information security officer at Huawei. – Huawei's design and deployment approach to security sets high standards that few can meet."

According to Huawei, NDAA restrictions do not allowcompanies provide US consumers with more advanced 5G technology, which will delay the commercial deployment of the 5G network and, in turn, will impede the improvement in the productivity of this technology in the country. In addition, network users in rural and remote regions of the United States will be forced to choose between government funding and high-quality, efficient, and cost-effective products. This will interfere with the network update process and will contribute to digital inequality. The restrictions imposed on Huawei will inhibit competition, with even worse consequences. As a result, American consumers will pay higher prices for low-quality products.

According to industry sources, the provision ofHuawei's ability to compete in the market will reduce the cost of wireless infrastructure by 15-40%. This will allow North America to save at least $ 20 billion over the next four years.

Mr. Guo Ping added:“If this law is repealed, as it should be, Huawei will be able to provide the US with more advanced technology and help build a better 5G network. Huawei is ready to solve the US government's security concerns. Lifting the ban under the NDAA will allow the US government to be more flexible, which is necessary to work with Huawei and resolve real security issues.”