According to the complaint, Section 889 of the 2019 NDAA not only bars all U.S. Government agencies from buying Huawei equipment and services, but also bars them from contracting with or awarding grants or loans to third parties who buy Huawei equipment or services, without any executive or judicial process.
"The U.S. Congress has repeatedly failed to produce any evidence to support its restrictions on Huawei products".
The planned legal action and public relations outreach compare with a more restrained response in December emphasising "trust in justice" when its chief financial officer, Sabrina Meng Wanzhou, was arrested in Vancouver at United States request.
The United States says Huawei equipment could be manipulated by China's Communist government to spy on other countries and disrupt critical communications. "It is an abuse of the USA lawmaking process". "And some major telecom companies operate joint ventures with the Chinese government, but the NDAA has signaled out a few and ignored the back of the supply chain", Song Luiping, Huawei Chief Legal Officer said.
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Huawei has about 40 per cent of the global market for network gear but its US sales evaporated after a congressional panel in 2012 cited the company and a Chinese competitor, ZTE Corp., as security risks and told phone carriers to avoid dealing with them.
The company's CFO Meng Wanzhou was arrested in Canada in December on suspicion of activity violating US sanctions against Iran.
The NDAA bans the USA government from doing business with Huawei or compatriot peer ZTE Corp or from doing business with any company that has equipment from the two firms as a "substantial or essential component" of their system. She stands accused of overseeing transactions that violate USA sanctions on Iran.
The move comes as Washington tries to persuade allies to ban Huawei from business alleging espionage risks.
In the escalating diplomatic row with Canada, China has detained two Canadians working in China, and on Monday accused one of them of stealing Chinese state secrets passed on to him by the other.
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Huawei, which insists it is a private company and not at the bidding of the government in Beijing, has also denied its equipment can be used for intrusion under Chinese cybersecurity and national security laws.
Outside, a small group of protesters burned a China flag, and waved placards calling for Meng to be extradited and demanding Beijing release the two Canadians. The year ended with the arrest of Huawei's chief financial officer (CFO) in Canada at US request, to the consternation of China.
Huawei founder Ren Zhengfei later said Meng's arrest was politically motivated and "not acceptable".
But Trump undercut that position by saying he would consider intervening in the case if it would help forge a trade deal with Beijing. "Huawei has an excellent security record and program.No contrary evidence has been offered".
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Whether or not one appreciates Trump's Twitter contributions, they certainly do shine a light on the targets Trump chooses. In office just a little over a month, she has already elicited a resolution that will come to the House floor tomorrow.