Huawei to Challenge U.S. Government’s Security Law in Lawsuit

Chinese tech giant Huawei announced Wednesday that it would sue the American government in response for its efforts to limit the company’s access to Western markets by labeling it a security risk.

Huawei, which filed the lawsuit in federal court in the Eastern District of Texas where its U.S. headquarters are, seeks from the court to reject as unconstitutional a part of this year’s U.S. military appropriations act that prohibits the government and its contractors from using Huawei equipment, The Associated Press reported.

In its lawsuit, the tech company argues that the law in question violates the constitutional separation of powers and denies due process. Huawei further claims the law causes it “concrete and particularized injury, and imminent future injury” and subjects it to “severe, permanent and inescapable” burden which can cause fatal harm to the company and limit further its access to the American market.

A Huawei official said the U.S. government uses “false, unproven and untested propositions” to enforce the ban, which in turn, could limit competition, slow the rollout of fifth-generation communications and lead to the increase in consumer prices.

“Huawei has an excellent security record and program. No contrary evidence has been offered,” said Song Liuping, the company’s chief legal officer.

The U.S. government, on the other hand, has repeatedly accused Huawei of spying it and sharing information gathered with its equipment with Beijing. The company denies the accusations.

In January, federal prosecutors filed charges against the Chinese tech giant, accusing it of stealing trade secrets and violating sanctions imposed on Iran. The Department of Justice further announced numerous charges against Huawei’s chief financial officer, Meng Wanzhou, who is in Canadian custody under charges of misleading international banks about Huawei’s business dealings in Iran that violated U.S. sanctions.

Huawei has about a 40-percent share of the global market for network gear, but since 2012 when it was labeled a security risk, its sales in the U.S. have evaporated.

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