Chinese technology business Huawei is taking the United States to court. The case asks the court to reject as unconstitutional part of the legislation setting military spending levels.
The U.S. government had barred federal agencies from using Kaspersky's anti-virus products because of concerns about its ties to the Kremlin and Russian spy operations.
It comes as the biggest global maker of network equipment fights a US campaign to persuade allies to shun Huawei. The company is fighting to keep its worldwide market share as phone carriers prepare to release the next generation of technology, called 5G. Its U.S. sales evaporated after a congressional panel in 2012 cited the company and a Chinese competitor, ZTE Corp., as security risks and told phone carriers to avoid dealing with them.
The complaint, filed in a U.S. federal court in Texas yesterday, challenges the constitutionality of Section 899 of the National Defense Authorization Act. The company's complaint argues that the law violates the U.S. Constitution.
It says the law causes the company "concrete and particularized injury, and imminent future injury" and subjects it to a "burden that is severe, permanent and inescapable" that amounts to the corporate "death penalty".
There are fears that China is using Huawei as a proxy so it can spy on rival nations and scoop up useful information. "We are compelled to take this legal action as a proper and last resort", Huawei's rotating chairman Guo Ping said. Guo said the ban would limit competition, slowing the rollout of fifth-generation communications and raising consumer prices.
The lawsuit will force the USA government to make its arguments against Huawei public. The court statement came after a federal court in Seattle, Washington, announced charges against two of the company's businesses in January.
China's government arrested two Canadians, a former diplomat and a businessman, on December 10 in what was widely seen as an attempt to pressure Canada to release Meng, the company's CFO. Even worse, the U.S. Government is trying to block us from the 5G markets in other countries. USA officials have asked Canada to send her to the United States for trial.
At a routine briefing Thursday, a Chinese foreign ministry spokesman noted that the Chinese government has also objected to the law.
The following explains the measures against Huawei, the nature of the lawsuit, and why it will likely be dismissed. He added that Huawei has the right to defend its business through the legal system.
Vodafone is using the U.S. firm Cisco at the core of its 5G network, the most sensitive area, and equipment from Sweden's Ericsson elsewhere.
Last June, the Trump administration slapped the European Union with steel and aluminum tariff hikes, forcing Brussels to respond against American products like bourbon whiskey and Harley-Davidson motorcycles.
Huawei is suing the USA government over a ban preventing federal agencies from purchasing its products.
Huawei is claiming the ban is unlawful, adding, the USA has failed to provide evidence that laws were broken.
The United States makes up 20 to 25 percent of the worldwide market for computer and telecom technology. "The NDAA law can only impair Huawei's long-term commitment to invest more and hire more here".
The ban is "based on numerous false, unproven and untested propositions", said Song Liuping, the company's chief legal officer, at the news conference. "Huawei has an excellent security record and program".
Australia, Japan, Taiwan and some other governments also have set limits on using Huawei technology.
Vodafone's chief technology officer, Scott Petty, said that now a ban would require his company to strip Huawei equipment out of its existing 4G network, according to the report.
"Huawei has not and will never implant 'backdoors, ' " said Guo, the chairman.
The concerns have escalated as Huawei has risen to become the world leader in telecommunications networking equipment and one of the top smartphone manufacturers alongside Samsung Electronics Co and Apple Inc. It would also be part of the foundation for 5G technology.
Chinese officials and some industry experts say the US government might be overstating security concerns to limit competition with Western telecom companies.
Reuters legal experts noted Russian software firm Kaspersky Lab filed a comparable "bill of attainder" challenge to the US ban on its products in 2017, but the suit was rejected, in part because the federal government presented "ample evidence" that Kaspersky products presented a security risk. The company has announced contracts with customers including the United Arab Emirates in the Middle East for network technology.
The Associated Press reported this story.
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