14 March 2019
Chinese tech giant Huawei is suing the U.S. over a law that bans government agencies from buying its equipment, stating that the legislation is unconstitutional. Huawei products were banned in the US and as well as other countries as they were deemed a security threat and a backdoor for the Chinese government. However, Huawei has refuted all these claims and asked the US government to show proof of the allegations.
The lawsuit was filed by the company this week and focuses on a provision in a law known as the National Defense Authorization Act. Section 889 of that legislation which prohibits executive government agencies from procuring telecommunications hardware made by Huawei and another Chinese firm, ZTE. Both the Chinese companies have been explicitly named in the act.
However, lawyers for the world's largest network equipment maker by revenue, have stated that the provision in the NDAA is against the U.S. Constitution.
Glen Nager, lead counsel for Huawei and partner at Jones Day, stated that the American law is "hurting Huawei's customers in the United States."
"It's damaging Huawei's reputation and it's limiting the ability of Huawei to provide its innovative products, including 5G, to consumers in the United States," he added. "Huawei hopes that it can engage in a constructive conversation with the president and his administration over how to bring these innovative technologies and Huawei competition to the United States while providing full assurance of security for the United States of America."
Huawei’s Chief Financial Officer Meng Wanzhou, the daughter of founder Ren Zhengfei, was also arrested last year in Canada and was accused of breaking U.S. sanctions against Iran. The executive faces extradition to the U.S. However, her lawyers are now suing Canadian authorities, alleging that her arrest was in violation of her constitutional rights. Huawei has stated that the false allegations against the company will lead to massive loss of goodwill for the company as well as revenue and it will have to spend billions to rectify its image.