PanamaTimes

Friday, Apr 26, 2024

Huawei files US lawsuit disputing that it is a security threat

Huawei files US lawsuit disputing that it is a security threat

Chinese telecom giant challenges FCC ruling, as founder says he would welcome Biden outreach

China’s Huawei Technologies Co. filed a lawsuit in the U.S. disputing its designation as a national security threat by the Federal Communications Commission, stepping up legal challenges in the country despite a change of administration in Washington.

The lawsuit filed Monday in the U.S. Court of Appeals for the Fifth Circuit asked for a review of an FCC ruling last year that found the company poses a national security threat and blocked American telecommunications operators from accessing a multibillion-dollar fund to buy Huawei-made telecom gear.

The complaint is Huawei’s latest challenge to the U.S.’s numerous actions targeting it over the past several years. Former President Donald Trump’s administration blocked the company from accessing American technology and sought to persuade allies that Huawei’s telecom gear presented national security risks.

Huawei’s lawsuit said the FCC’s ruling in December exceeded its authority and was “arbitrary, capricious, and an abuse of discretion, and not supported by substantial evidence.”

An FCC spokeswoman said, “Last year the FCC issued a final designation identifying Huawei as a national security threat based on a substantial body of evidence developed by the FCC and numerous U.S. national security agencies. We will continue to defend that decision.”

U.S. officials have long said that Beijing could exploit Huawei telecom gear to spy or disrupt telecommunications networks, though they haven’t publicly shown evidence of any such behavior. Huawei’s founder, Ren Zhengfei, has said the company would never spy on behalf of any country.

Huawei filed its lawsuit hours before Mr. Ren told a group of journalists in China that he hoped the Biden administration would be more open to policies “that are in the interests of U.S. companies,” adding that he would welcome a phone call from the new president.

“We still hope to be able to buy a lot of U.S. components, parts and machinery so that U.S. companies can also develop with the Chinese economy,” Mr. Ren said Tuesday.

The Biden administration hasn’t clearly spelled out its approach to Huawei. During a hearing last month, President Biden’s nominee for commerce secretary, Gina Raimondo, vowed to protect the U.S. against Chinese technology threats but declined to promise to maintain the Commerce Department’s blacklisting of Huawei, pending a review.

Huawei pursued a combative legal response to the Trump administration’s actions, challenging both the FCC and a U.S. law that barred the company from doing business with American contractors. A federal judge in Texas threw out the latter suit last year.

A separate challenge against the FCC filed in 2019, which also disputes the designation of Huawei as a security threat, is continuing.

The legal efforts reflect Huawei’s push to exhaust all of its options as it faces the prospect of losing what remains of its foothold in the U.S. telecommunications market. Huawei executives have long voiced frustration with Western suspicions—never publicly proven—that the company poses security risks and have challenged U.S. officials to present evidence of any espionage.

Despite worries in Washington, Huawei has long partnered with rural telecom carriers across the U.S. that have praised its prices and the dependability of its service. Company executives had hoped Huawei could build on that record to work with larger operators and pitch its smartphones to U.S. consumers.

Mr. Trump dashed those hopes as the company became a key target in his trade war with Beijing. In addition to blocking the export of U.S. technology to Huawei, the U.S. under Mr. Trump issued twin criminal indictments of the company, alleging that it stole technology and evaded sanctions on Iran. Meng Wanzhou, the company’s CFO, has been under house arrest in Canada for more than two years as she resists American officials’ efforts to extradite her to the U.S.

The U.S. actions have squeezed Huawei. The Commerce Department tightened an export ban on Huawei in August, cutting it off from computing chips critical to its smartphones and telecom equipment. Analysts have said Huawei is relying on stockpiled inventory to build its products.

The tighter controls have had the greatest impact on the company’s smartphone business, which accounted for more than half its revenue in 2019. Shipments of its handsets fell more than 40% in the quarter to Dec. 31 from a year earlier, and Huawei in November sold off its budget Honor brand of smartphones to a consortium led by the government of Shenzhen, the southern Chinese city where Huawei is based.

Mr. Ren said in his remarks Tuesday that the company still managed to increase both profit and revenue last year despite the challenges, although it has yet to report its 2020 earnings. In 2019, Huawei made about $9.7 billion in profit on more than $130 billion in revenue.

Newsletter

Related Articles

PanamaTimes
0:00
0:00
Close
Apple warns against drying iPhones with rice
In a recent High Court hearing, the U.S. argued that Julian Assange endangered lives by releasing classified information.
Global Law Enforcement Dismantles Lockbit Ransomware Operation
Russian opposition leader Alexey Navalny has died at the Arctic prison colony
The President of Argentina Javier Mile does not fly private, he flies commercial, with the citizens he represents. And they LOVE him for it.
Bitcoin Reaches $50,000 for First Time in Over Two Years
Belo Horizonte: Brazil's Rising Carnival Hotspot for 2024
In El Salvador, the 'Trump of Latin America' stuns the world with a speech slamming woke policing after winning a landslide election
Tucker’s interview with Putin is over 50M views on X within the first 5 hours.
Finnish Airline, Finnair, is voluntarily weighing passengers to better estimate flight cargo weight
President Nayib Bukele has proudly announced El Salvador's remarkable achievement of becoming the safest nation in the Western Hemisphere.
Former Chilean President Sebastian Piñera Dies in Helicopter Crash
This farmer seems to understand science a bit more than the event organizer, Klaus Schwab.
Facebook turns 20: From Mark Zuckerberg's dormitory to a $1trn company
The Coolest Dictator in the World" on the Path to Victory in El Salvador
Macron, France and fake news
Indian-Origin Man 'King' Arrested For Smuggling $16 Million Drugs Into US
Can someone teach Americans that not every person with slanted eyes is Chinese?
Europe's Farmers Feeding the People, Protesting Against Politicians Who Do Nothing for Their Country and Serve Only Themselves at Taxpayers' Expense
Paris Restaurant That Inspired 'Ratatouille' Loses $1.6 Million Worth Of Wine
Brazilian Police Investigate Bolsonaro's Son for Alleged Illegal Spying
Police in Brazil Raid Residence of Bolsonaro Associate Over Allegations of Illegal Spying
Border Dispute Escalates as Texas Governor Vows Increased Razor Wire
OpenAI Enhances ChatGPT-4 Model, Potentially Addressing AI "Laziness" Issue
The NSA finally acknowledges spying on Americans by acquiring sensitive data
Report Reveals Toxic Telegram Group Generating X-Rated AI-Generated Fake Images of Taylor Swift
US Border Patrol States 'No Plans' to Remove Razor Wire Installed in Texas
Bitcoin Experiences Approximately 20% Decline in Value
Klaus Schwab recently appointed himself as the Earth's "trustee of the future."
DeSantis Drops Out, Endorses Trump.
Nikki Haley said former President Trump is "just not at the same level" of mental fitness as he was while president in 2016.
Residents of a southern Mexican town set the government palace on fire in response to the police killing of a young man
Samsung Launches AI-Driven Galaxy S24, Ushering in New Smartphone Era
Judge Questions SEC's Regulatory Overreach in Coinbase Lawsuit
The Ecuador prosecutor who was investigating the television studio attack, has been assassinated.
Is artificial intelligence the solution to cyber security threats?
Vivek Ramaswamy suspends his US election campaign and endorses Trump.
Viral Satire: A Staged Satirical Clip Mistaken as Real Footage from the 2024 World Economic Forum in Davos
The AI Revolution in the Workforce: CEOs at Davos Predict Major Job Cuts in 2024
Ecuador Reports 178 Hostages in Prison Gang Standoff
The Startling Cuban Espionage Case That Has Rattled the US Government
Two Armed Men in Ecuador, Dressed as Batman and The Joker Storm the Streets.
Armed Gang Raids Ecuadorian TV Station Following State of Emergency Declaration
Anti-Democratic Canada: Journalist Arrested for Questioning Canadian Finance Minister on Support of Terrorist Group
Ecuador's 'Most-Wanted' Criminal Vanishes from Prison
Mexican Cartel Supplied Wi-Fi to Locals Under Threat of Fatal Consequences for Non-Compliance
Border Surge Leads to Over 11,000 Migrants Waiting in Northern Mexico
Outsider Candidates Triumph in Latin American Elections
As Argentina Goes to the Polls, Will the Proposal to Replace the Peso with the Dollar Secure Votes?
Fatal Shark Attack Claims Life of Boston Woman Paddleboarding Near Bahamas Resort, According to Police
×