Huawei is suing the United States government over the ban on its products

08 March, 2019, 06:23 | Author: Corey Lynch
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Still, the U.S. Government is sparing no effort to smear the company and mislead the public about Huawei. It also claims the measure would limit the company's ability to sell its products in the United States.

Huawei may figure the potential benefits in terms of public opinion are worth a legal fight, no matter what the outcome. The case asks the court to reject as unconstitutional part of the legislation setting military spending levels.

The year ended with the arrest of Huawei's chief financial officer (CFO) in Canada at USA request, to the consternation of China.

Huawei, founded in 1987 by a former military engineer, overtook Ericsson in 2017 as the biggest global supplier of network gear.

Some European officials and others cite a Chinese security law that requires companies to co-operate with intelligence agencies.

The giant tech company announced on Thursday that it would file a suit in a Texas district court, challenging a government defense bill which effectively blocks it from doing business in America.

In a 13-count indictment, the U.S. Department of Justice accuses Meng, Huawei, and several of the company's subsidiaries of violating sanctions against Iran.

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".

Relations between the United States and China have been tense over technology competition and use of computers to gather information. The company has spent years trying to put to rest accusations it facilitates Chinese spying or is controlled by the ruling Communist Party. "We are compelled to take this legal action as a proper and last resort", Huawei's rotating chairman Guo Ping said. Industry analysts said excluding the Chinese vendor from markets for 5G equipment would reduce competition and might lead to higher prices.

Guo, who also accused the US government of hacking Huawei's servers and stealing its emails, insisted that Huawei has not and will never implant backdoors in its equipment. The court statement came after a federal court in Seattle, Washington, announced charges against two of the company's businesses in January.

So, for Meng, too, the most likely positive outcome would be for a relatively lenient plea deal, given that under federal law, the charges she faces in Brooklyn carry as much as 30 years in prison.

The company's aggressive response to the criminal charges may reflect a desire to both circumvent the USA justice system and combat claims that threaten billions of dollars in sales outside of China, said Alexander Capri, a visiting senior fellow at the National University of Singapore Business School.

The airport stop provided key evidence against ZTE in its legal battle with the United States, according to USA officials.

On December 10, China arrested two Canadians, a former diplomat and a businessman, in what many observers think is an attempt to get Canada to release Meng.

At a routine briefing Thursday, a Chinese foreign ministry spokesman noted that the Chinese government has also objected to the law.

Huawei denies altering its equipment to facilitate spying and has set up testing centres in Britain, Canada and continental Europe to allow governments to examine its technology. He added that Huawei has the right to defend its business through the legal system.

Huawei has about 40 percent of the global market for network gear. But it sells very little in the United States after Congress said the company was a security risk in 2012.

Huawei denies that it works with the Chinese government and that its products are created to facilitate spying.

Huawei said it had filed a complaint in a federal court in Texas challenging the constitutionality of Section 889 of the National Defense Authorization Act (NDAA), a section signed into law by the USA president in August that banned federal agencies and their contractors from procuring its equipment and services.

"The U.S. Congress has repeatedly failed to produce any evidence to support its restrictions on Huawei products".



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