Huawei Sues to Challenge U.S. Law Banning Its Products

Huawei’s complaint was filed in the Eastern District of Texas, which includes its U.S. headquarters. It objects to Section 889 of the National Defense Authorization Act (NDAA) signed into law in August, which prohibits federal agencies and related contractors from doing business with the company.

The State Department has expressed concerns that President Xi Jinping’s government could use Huawei’s smartphones to spy on Americans. Huawei has in turn brushed that worry aside, claiming that as a private company it has no affiliation with the government.

“They’ll steal American technology and, frankly, use those systems to invade your privacy,” Secretary of State Mike Pompeo said on Monday. “Huawei is owned by the state of China and has deep connections to their intelligence service. That should send off flares for everybody who understands what the Chinese military and Chinese intelligence services do. We have to take that threat seriously.”

“Huawei has an excellent security record and program. No contrary evidence has been offered,” said Huawei’s chief legal officer, Song Liuping.

In a 13-count indictment filed in New York City in January, the Justice Department charged the company and its chief financial officer, Meng Wanzhou, with a laundry list of crimes including conspiracy, money laundering, bank and wire fraud, flouting U.S. sanctions on Iran, and obstruction of justice. Wanzhou was arrested in Vancouver in December and is currently awaiting extradition to the U.S.

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