Accessibility links

Breaking News

China's Huawei Sues to Allow Rural Carriers to Buy its Equipment

FILE - The Huawei logo is seen at a Huawei store at a shopping mall in Beijing, July 4, 2018. The Chinese-owned telecommunications giant has been blocked from rolling out Australia's 5G network because of security concerns.

Chinese telecom giant Huawei has filed a lawsuit in a U.S. federal court to throw out a Trump administration rule that bans phone carriers in rural areas from using money from an $8.5 billion government fund to purchase Huawei's equipment.

The lawsuit says the Federal Communications Commission acted improperly when it imposed the ban last month on Huawei and its domestic rival ZTE, citing national security concerns.

At a news conference at the company's headquarters in Shenzhen Thursday, Song Liuping, Huawei's chief legal counsel, said the FCC made its decision without any evidence that Huawei posed a national security threat.

This is the second lawsuit filed by Huawei to combat U.S. government claims that it presents a threat to U.S. national security. The company first filed suit in March challenging the legality of a law passed by the U.S. Congress last year that bars government agencies and contractors from doing business with the tech giant.

Huawei is also involved in a separate legal fight involving Meng Wanzhou, its chief financial officer and the daughter of founder Ren Zhengfei. Meng was arrested in Canada last December on a U.S. warrant seeking her extradition to face charges of violating U.S. sanctions on Iran.

The United States and others worry that technology companies located in countries with governments like China's could be subject to state influence, making the networks insecure. President Donald Trump signed an executive order in May that bars American companies from using telecommunications equipment that is made by companies that pose a national security risk.

But the administration has since granted a series of limited reprieves so Huawei can continue to provide equipment to carriers that provide wireless networks in rural areas.