Global telecom hardware maker Huawei announced that it is suing the US Government, after it filed a lawsuit to challenge Section 889 of the National Defense Authorization Act (NDAA) that US President Donald Trump signed into law.
According to the law, federal agencies and contractors are barred from purchasing equipment and services from Huawei.
Many view this latest development as an escalation in China’s rebuttal against the United States in the trade standoff, with both the countries spend most of the time slapping import tariffs on billions of dollars worth export-imports from each other.
Much to the dismay of China, the end of 2018 saw the arrest of Huawei CFO in Canada under the pressure of the US. According to various reports Huawei was under investigation much before Trump’s “trade war.”
“The U.S. Congress has repeatedly failed to produce any evidence to support its restrictions on Huawei products,” said Huawei Rotating Chairman Guo Ping, “We are compelled to take this legal action as a proper and last resort.”
“This ban not only is unlawful, but also restricts Huawei from engaging in fair competition, ultimately harming US consumers. We look forward to the court’s verdict,” he added, in a statement.
Huawei has been touted as the market leader in the global launch of 5G telecommunication network and services, along with being the world’s largest telecoms equipment maker.
In the lawsuit, Huawei stressed that its offerings adhere to advanced security procedures, and said there were no documented security vulnerabilities in 170 countries across the world where Huawei operates.
With the US government pushing allies to pull the plug on their support to Huawei, the telecom firm has gone on an offensive launching a full-blown PR and legal battle against the Trump administration.
RACE TO THE TOP
Back in January, Huawei Technologies Co Ltd said that it would soon be the world’s biggest-selling smartphone vendor in 2019, despite its US ban
Huawei gave its positive forecast in a time when market leader Samsung and rival Apple (AAPL) have warned of weakening sales.
The company’s consumer business revenue jumped 50% jump last year, and with the current growth momentum, plans to continue delivering. Huawei also launched a foldable smartphone recently, cementing its growth prospects.