Huawei is suing the United States government following what it says are unconstitutional sales restrictions imposed by congress.
In a press conference from its offices in Shenzhen, the China-based technology company announced it has filed a complaint with the US federal court to challenge the constitutionality of Section 889 of the 2019 National Defense Authorization Act (NDAA).
"The U.S. Congress has repeatedly failed to produce any evidence to support its restrictions on Huawei products. We are compelled to take this legal action as a proper and last resort," said Guo Ping, Huawei Rotating Chairman.
"This ban not only is unlawful, but also restricts Huawei from engaging in fair competition, ultimately harming U.S. consumers. We look forward to the court's verdict, and trust that it will benefit both Huawei and the American people."
The lawsuit was filed in a US district court in Plano, Texas.
This follows building tension between the US and Huawei after the US reportedly barred federal agencies from using Huawei tech. The US has long voiced concerns that Huawei technology - along with its fellow Chinese telecom company ZTE - could pose a security risk, fearing that the company's technology could act as a backdoor for the Chinese government to spy.
The ban also bars Huawei from contracting with or awarding grants or loans to third parties who buy Huawei equipment or services, without any executive or judicial process.
They say it violates the Bill of Attainder Clause and the Due Process Clause. It also violates the Separation-of-Powers principles enshrined in the U.S. Constitution, because Congress is both making the law, and attempting to adjudicate and execute it.
"Section 889 is based on numerous false, unproven, and untested propositions. Contrary to the statute's premise, Huawei is not owned, controlled, or influenced by the Chinese government. Moreover, Huawei has an excellent security record and program. No contrary evidence has been offered,” said Song Liuping, Huawei's Chief Legal Office.
The restrictions are particularly hurting Huawei’s rollout of 5G in the US, which could reduce the cost of wireless infrastructure by between 15% and 40%. This would save North America at least $20 billion (R284 million) over the next four years.
Thanks to a partnership with Huawei, South African mobile data-only network operator Rain, could beat cellphone network giants Vodacom, MTN, Cell C and Telkom to 5G in South Africa. They plan leverage their existing licensed spectrum on 4G, to bring 5G to South Africa by mid-2019.
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