Daily Management Review

Huawei Preparing To File Case Against US Government: Reports


Reports in the United States suggest that the US government would be sued by the Chinese telecom giant Huawei over the decision of the Trump administration not to allow the federal agencies using products supplied by the company.
According to reports quoting sources with knowledge of the matter, Huawei is likely to file the case in the Eastern District of Texas, where the company has its US headquarters. The reports did not name the sources because the matter was confidential.
According to experts, this strategy is being taken by the Chinese company to make the US government to spell out its reservations against the Chinese company among the public. Experts also see this move to be part of a larger strategy of Huawei to create a defence for itself against the slander that the US government gad started against it and even arguing US ally countries to ban use of Huawei equipment. The US fears that use of Huawei equipment would allow Chinese agencies to spy on Western countries which in turn would be a threat ti national security.  There has been strong reservations expressed against America’s actions by executives of Huawei and the company has now launched new marketing campaigns that are designed to revive the tarnished image of the company because of the US actions.
It has been years that the officials in the US have been expressing fears that telecommunication equipment supplied by Huawei could have backdoors which can be used for spying on western countries and which can also be used to sabotage national communication grids. All such allegations have been refuted by Huawei. However, the use of its equipment for their telecommunications networks have  been prevented for US companies such as AT&T and Verizon.
In the last year or two, even as Huawei has been preparing to extensively take part in the global roll out of the new age mobile network technology called 5G, the US has started to increase its rhetoric against the company and putting more pressure on the Chinese firm.
Criminal charges against the company and its chief financial officer in connection with evading American sanctions on Iran had been filed by the US Justice Department earlier this year.
A gearing has been initiated in Canada earlier this week over whether to extradite finance chief of Huawei, Meng Wanzhou, to the United States as demanded by it to face the criminal charges.  The Canadian government and police have been sued by the lawyers of Meng and have argued that her rights were violated by the conditions under which she had been arrested and detained.
A section of a defense spending authorization law that was approved last year in the US is anticipated to be challenged by Huawei in the case being filed in the country.  Under that law, telecom equipment made by Huawei and another Chinese company, ZTE, are prevented to be used by executive agencies in the US.
Reports also suggested that the line argument by the lawyers of Huawei would target a “bill of attainder,” or a legislative act in which no trial is held for taking punitive action against an individual or a group.