The situation is heating up: Huawei sues the US government

Huawei filed a lawsuit in the US federal court, where it will seek to declare unconstitutional article 889 of the law

budget allocations for national defense (NDAA). It restricts the sale of Chinese giant products in the US market and prevents the development of healthy competition, Huawei lawyers say.

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 unverified data. Contrary to the assumption, Huawei is not owned, controlled or influenced by the Chinese government. Moreover, Huawei has an exceptional reputation and security program. There was no evidence to the contrary. ”

Sun Lupine, Director of Legal 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 sues the US government for unconstitutional sales restrictions imposed by Congress on the company

Shenzhen, March 7, 2019 - Today, Huawei announced that it filed a lawsuit in the US federal court, which challenged the constitutionality of Article No. 889 of the Law on Budgetary Funds for National Defense of 2019 (NDAA). The company wants to achieve a declarative decision regarding unconstitutional restrictions imposed on Huawei, as well as a judicial ban on these restrictions.

"The US Congress has repeatedly refusedprovide any evidence to support these restrictions on Huawei’s products. We have to go to court as an appropriate and extreme measure, ”said Guo Ping, head of the board of directors of Huawei. “This ban is not only illegal, but also restricts Huawei’s right to participate in fair competition, which ultimately harms US consumers. We look forward to the court’s decision and believe that this will benefit both Huawei and the American people. ”

The lawsuit was filed with the US District Court in Plano,state of texas. According to the statement of claim, Article 889 of the Law on Budgetary Provisions for National Defense of 2019 prohibits all US government agencies not only to acquire Huawei equipment and services, but also to enter into contracts, provide subsidies or loans to third parties who purchase equipment or services Huawei, without the possibility of reviewing any executive or judicial process. This is a violation of the provision of the law “On deprivation of civil and property rights for high treason” and the provision “On due process of law”. It also violates the principle of separation of powers established by the US Constitution, since Congress simultaneously establishes the law, at the same time trying to rule and administer justice.

Song Luping (Song Liuping), Director of LegalHuawei’s questions, stressed: “Article No. 889 is based on numerous false, unverified and unconfirmed data. Contrary to the assumption, Huawei is not owned, controlled or influenced by the Chinese government. Moreover, Huawei has an exceptional reputation and security program. There was no evidence to the contrary. ”

“We are proud to be one of the mostopen and transparent companies in the world, ”said John Suffolk, global information security leader at Huawei. “Huawei’s approach to security, based on the design and deployment of projects, sets high standards that few people 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 United States with more advanced technology and help create a better 5G network. Huawei is ready to solve the security problems of the American government. Lifting the ban according to the NDAA will allow the US government to be more flexible, which is necessary for working with Huawei and resolving real security issues. ”