Huawei Plans Legal Challenge to Latest US Pressure

Huawei Plans Legal Challenge to Latest US Pressure: Report

Donald Trump blocked American companies from doing business with Huawei in May

Highlights
  • Huawei plans to file a lawsuit in the United States next week
  • FCC looks to bar Huawei from accessing $8.5 billion in US federal funds
  • Huawei and ZTE are branded as threats to US national security by FCC

Chinese telecoms giant Huawei is preparing a legal counterpunch against new moves by American regulators to bar the company from accessing $8.5 billion in US federal funds for services and equipment, a report said Friday. The Federal Communications Commission (FCC) last week branded Huawei and its Chinese rival ZTE as threats to US national security and blocked them from the fund. It also proposed that other service providers be required to cancel or replace existing services and equipment from the companies.

Huawei plans to file a lawsuit in the United States next week, The Wall Street Journal reported, citing unidentified sources.

A Huawei spokeswoman declined to comment but the company has invited AFP and other media to its headquarters in the southern city of Shenzhen next Thursday for an unspecified announcement.

FCC Chairman Ajit Pai said in a statement explaining the latest move that Huawei and ZTE “have close ties to China’s communist government and military apparatus.”