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Huawei Sues US Over Defense Law

09 March 2019

Meng was formally charged with bank and wire fraud in violation of American sanctions against Iran.

During a press conference in the early hours of Thursday morning, the company announced that it would be pursuing a lawsuit in a Texas court, claiming damages against the U.S. for what it described as an "unlawful" ban. He complained Washington was "sparing no effort to smear" the company.

While Huawei had very little market share in the United States telecoms market before the bill, it viewed Section 889 as a stumbling block to addressing broader problems with Washington as its existence prevented any steps towards reconciliation.

"The U.S. Congress has repeatedly failed to produce any evidence to support its restrictions on Huawei products", Guo Ping, Huawei chairman, said in a statement announcing the lawsuit.

That Huawei has not launched similar legal action in Australia could be for a number of reasons, but the most likely is the small size of our market; with a shade under 25 million residents, excluding Huawei from our carriers is unlikely to have anywhere near as significant impact on Huawei's global operations as the USA ban will have.

Update 1 (9:22PM EST): Huawei is suing the United States governemnt for singling out Huawei and damaging its reputation without providing proof that the company is a threat as the USA congress claims and without allowing Huawei due process to reach a resolution. "No contrary evidence has been offered", said Song Liuping, Huawei's Chief Legal Office.

Chinese authorities and some industry analysts say Washington might be exaggerating security concerns to limit competition with Western vendors.

Huawei, based in Shenzhen, near Hong Kong, is a leading developer of 5G, along with rivals Nokia Corp. of Finland and Sweden's LM Ericsson.

The move may send a global signal that Huawei is willing to use all means, including national courts, to prevent attempts to exclude it from a race to the 5G market - the future of high-speed telecommunications. It says it supplies 45 of the world's top 50 phone companies and has contracts with 30 carriers to test 5G wireless technology.

The legal action compared with a more restrained response in December emphasising "trust in justice" after the arrest of CFO Meng Wanzhou.

On Monday, the government accused the two men of acting together to steal state secrets.

Ms Meng faces a May 8 hearing in Vancouver, where she was arrested while changing planes.

Neil Townsend, senior market analyst at FarmLink, however, said he thinks there is a definite link to the Huawei case.

A law recently enacted by Beijing that obliges Chinese companies to aid the government on national security has added to the concerns.

The action signals a more aggressive response from the company toward its US accusers, who have been trying to persuade other countries to ban Huawei gear from crucial fifth-generation communications networks.

Meng Wanzhou, the chief financial officer of Huawei Technologies, is set to return to British Columbia Supreme Court today.

On Thursday, Guo said that "Huawei has not and will never implant "backdoors".

Huawei has been pulling out all the stops on the public relations front.

Huawei has responded with an aggressive PR campaign to counter the United States warnings, with reclusive founder Ren Zhengfei denying the fears in a series of foreign media interviews.

Huawei Sues US Over Defense Law