Chinese tech giant Huawei takes action against U.S. ban on its equipment, questioning the constitutionality of the National Defense Authorization Act. “The law explicitly bans Huawei by name despite ‘no evidence’ of a security risk,” said Huawei’s Chief Legal Officer Song Liuping. “There is no gun, no smoke. Only speculation.”
A defense spending bill was passed and signed in the summer of 2018 in efforts to prohibit the purchase of Huawei equipment by U.S. government agencies. In March, a lawsuit was filed in U.S. District Court for the Eastern District of Texas which questioned whether Section 889 of the National Defense Authorization Act is legal. The hearing is due to be held Sept. 19. The U.S. government accuses Huawei Technologies of sabotaging its equipment for the use of espionage on behalf of the Chinese Communist Party, and is vigorously encouraging other nations to prohibit the expansion of Huawei’s 5G network within their borders. In response to such accusations and efforts of the Trump Administration, Song Liuping responds, “Politicians in the U.S. are using the strengths of an entire nation to come after a private company.”
Huawei was founded by Ren Zhengfei, a former engineer in the People’s Liberation Army and a member of the Communist Party of China. Although Ren insisted that Huawei is a private company, analysts argue that the company is powerless to resist if the Communist Party asks for information. Glen Nager, a partner at the Law Firm Jones Day, accused the actions of the U.S. government “as a response of Huawei’s alleged misdeeds and supposed associations with the Chinese government Communist Party,” and that this was a breach of constitutional rules.
The U.S. Commerce Department essentially gave Huawei the “death penalty” this month by adding the company to the Commerce Department’s Entity List, which forbids U.S. companies from performing any business transactions with the Chinese company. The Commerce Department said it reached this decision because Huawei “is engaged in activities that are contrary to U.S. national security or foreign policy interest.”
Additionally, Ren’s daughter, Huawei Chief financial officer Meng Wanzhou, is charged for breaching American sanctions against Iran and is currently under house arrest in Canada and fighting extradition to the U.S. Huawei is issuing multiple legal challenges to counteract the actions of the U.S. government, and simultaneously aiming to portray the company as a private independent tech company that strives to enhance global networks.