China's Huawei Sues US Congress, Brands Business Bar 'Unconstitutional' Overreach
Xu Wei
DATE:  Mar 07 2019
/ SOURCE:  yicai
China's Huawei Sues US Congress, Brands Business Bar 'Unconstitutional' Overreach China's Huawei Sues US Congress, Brands Business Bar 'Unconstitutional' Overreach

(Yicai Global) March 7 -- Chinese communications giant Huawei Technologies has filed a lawsuit in the US attacking the constitutionality of restrictions against it the US Congress has enacted into law.

Huawei seeks to have these constraints targeting it declared unconstitutional and a permanent injunction against them issued.

The lawsuit filed in a US District Court in Plano, Texas argues Section 889 of the National Defense Authorization Act not only bans US government agencies from buying Huawei equipment and services, but also prohibits them from doing business with third parties who do so, without any executive or judicial process. This violates due process and a constitutional ban on legislation that targets a specific group without trial, the pleadings claim.

It also violates other constitutional principles, because Congress is not only making law, but trying to adjudicate and execute it, too, and thus encroaching on the preserves of the courts and president.

The curbs stop Huawei from providing more advanced fifth-generation wireless communications networks to US users, the company claimed, adding they will also delay commercial use of the new technology, hinder efforts to improve US 5G network performance and hamstring competition, so US consumers will pay more for inferior products.

Allowing Huawei to compete will reduce wireless infrastructure costs by between 15 and 40 percent, sector estimates show. This would save at least USD20 billion over the next four years, the firm added.

No Smoking Gun

"Section 889 is based on numerous false, unproven, and untested propositions," Huawei's Chief Legal Officer Song Liuping stressed. "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 adduced," Song continued.

"The US 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, the firm's rotating chairman. "This ban is not only unlawful, but also restricts Huawei from fairly competing, ultimately harming US consumers. We look forward to the court's verdict, and trust that it will benefit both Huawei and the American people," he added.

"At Huawei we are proud that we are the most open, transparent, and scrutinized company in the world," said John Suffolk, Huawei's global cyber security and privacy officer. "Huawei's approach to security by design development and deployment sets a high standards bar that few can match," he stated.

"If this law is set aside, as it should be, Huawei can bring more advanced technologies to the US and help it build the best 5G networks," Guo said. "Huawei is willing to address the US government's security concerns. Lifting the NDAA ban will give the US government the flexibility it needs to work with Huawei and solve real security issues," he argued.

Editor: Ben Armour

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Keywords:   Huawei,The United States