(Yicai Global) Dec. 5 -- China's Huawei Technologies has filed a lawsuit against an independent US federal communications agency, seeking to overturn an order that prohibits rural carriers from tapping a USD8.5 billion government fund to purchase telecoms equipment from it due to an alleged national security threat. 

The US Federal Communications Commission fails to substantiate its arbitrary findings with evidence and offer Huawei required due process protections, the Shenzhen-based firm said in a statement today. 

"The designation is based on a fundamental misunderstanding of Chinese law and on unsound, unreliable, and inadmissible accusations and innuendo, not evidence," said Glen Nager, Huawei's lead counsel for the legal action.

Last month, the FCC voted unanimously in favor of designating Huawei and its peer ZTE as national security threats. That blocks Huawei fans' way to the Universal Service Fund. This is the second lawsuit that the Chinese firm has filed in the US this year regarding market access. In May, Huawei was added to the Entity List that bars technology purchases. 

"Banning a company like Huawei, just because we started in China – this does not solve cyber security challenges," said the firm's Chief Legal Officer Song Liuping.

Huawei suggested that the restriction will cost the US because other telecoms firms are not as willing to work in remote, sparsely populated areas. The ban and the following "rip-and-replace" proposal would cost hundreds of millions of dollars and even force some small carriers to go bankrupt, said Karl Song, vice president of the firm's corporate communications department. 

Editor: Emmi Laine