Huawei Legally Challenges US Defense Act Claiming It To Be Unconstitutional

Huawei Ban
A journalist holding a microphone with a Huawei logo (Photo: Reuters / Jason Lee)

In response to the United States' recent trade ban against it, Chinese telecommunications equipment provider Huawei Technologies has now filed a lawsuit claiming that the US' recently enacted defense law is outright unconstitutional. The suit is the company's latest bid to counteract the United States' imposed trade ban, which is heavily affecting its global expansion.

Huawei originally filed the lawsuit in March, which was followed by a motion for judgment against the US earlier this week. The suit was filed in the US District Court for the Eastern District of Texas. The suit asked for a motion for summary judgment against the United States government and its 2019 National Defense Authorization Act (NDAA) with claims of it being unconstitutional.

The 2019 bill, which was passed by Congress last summer, directly accuses Huawei of being a security threat to the nation citing its alleged ties to the Chinese government. It also placed a ban on the use of the company's different communication equipment in any federal-run facility by any federal agency.

The Chinese firm, which produces a huge portion of the telecommunications equipment used globally, has repeatedly denied being controlled by the Chinese government or its military and intelligence agencies.

To make matters worse, the US Commerce Department recently included Huawei in its trade blacklist. This basically banned any US company from doing business with Huawei. The move reverberated throughout the global tech sectors, sending tech stocks in markets around the world downward.

Just recently, US Secretary of State Mike Pompeo reiterated the country's stand against Huawei. Pompeo mentioned in an interview that the country still believes that Huawei is an "instrument of the Chinese government."

The official further claimed that there was a deep connection between both entities and that it was just something most Americans wouldn't understand.

According to lawyers representing Huawei, the US court had agreed to hold hearings starting in September to hear the motions from both sides.

However, legal experts believe that Huawei's actions in the United States may eventually fall on deaf ears given that it would be very hard for any court to question national security determinations. Some experts even believe that Huawei's suit may eventually be dismissed.

 What is for certain is that Huawei's legal action against the NDAA will be an uphill battle given that it will be going against the Congress' decision. Last year, a similar suit was filed by Russian cybersecurity firm Kaspersky Lab. The suit was eventually rejected by a federal appeals court, which denied the company's complaint against the government banning the use of its software. 

© 2019 Business Times All rights reserved. Do not reproduce without permission.
Sign Up for Newsletters and Alerts