Money: Huawei sues U.S. government, seeks NDAA ban lift - PressFrom - Canada
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MoneyHuawei sues U.S. government, seeks NDAA ban lift

04:25  07 march  2019
04:25  07 march  2019 Source:   reuters.com

Huawei is growing in Canada despite pressure there

Huawei is growing in Canada despite pressure there China's Huawei is growing its presence in Canada, despite intense pressure on the company from the United States and geopolitical tensions between Ottawa and Beijing. The phone and telecom equipment maker said Thursday that it will add 200 new research and development jobs in Canada, a 20% increase. It will also up its research and development spending there by 15%. "We are grateful to have the opportunity to work in Canada — a country with one of the most innovative technology communities in the world," said Eric Li, president of Huawei Technologies Canada, in a statement.

The tech giant maintains that the US government specifically singled out two Chinese firms – ZTE and Huawei – in its National Defense Authorization Act . Such a provision in the NDAA , Huawei alleges, violates the US Constitution and illegally bans federal agencies from buying its products.

Chinese company files lawsuit claiming restriction is unlawful, harms consumers and violates constitution.

Huawei sues U.S. government, seeks NDAA ban lift© Reuters/Aly Song FILE PHOTO: People walk past a sign board of Huawei at CES (Consumer Electronics Show) Asia 2018 in Shanghai

By Sijia Jiang and Twinnie Siu

HONG KONG (Reuters) - Chinese telecoms equipment maker Huawei Technologies Co Ltd on Thursday confirmed it is suing the U.S. government over a section of a defense bill passed into law last year that restricted its business in the United States.

Huawei said it had filed a complaint in a federal court in Texas challenging the constitutionality of Section 889 of the National Defense Authorization Act (NDAA), a section signed into law by the U.S. president in August that banned federal agencies and their contractors from procuring its equipment and services.

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Today, Huawei announced that it has filed a complaint in a U . S . federal court that challenges the constitutionality of Through this action, Huawei seeks a declaratory judgment that the restrictions targeting Huawei are unconstitutional Lifting the NDAA ban will give the U . S . Government the

Through this action, Huawei seeks a declaratory judgment that the restrictions targeting Huawei are unconstitutional, and a permanent injunction against these restrictions. Lifting the NDAA ban will give the U . S . Government the flexibility it needs to work with Huawei and solve real security issues."

"The U.S. Congress has repeatedly failed to produce any evidence to support its restrictions on Huawei products. We are compelled to take this legal action as a proper and last resort," Huawei Rotating Chairman Guo Ping said in a statement.

"This ban not only is unlawful, but also restricts Huawei from engaging in fair competition, ultimately harming U.S. consumers. We look forward to the court's verdict, and trust that it will benefit both Huawei and the American people."

While Huawei had very little market share in the U.S. telecoms market before the bill, it viewed Section 889 as a stumbling block to addressing broader problems with Washington as its existence prevented any steps toward reconciliation.

"Lifting the NDAA ban will give the U.S. Government the flexibility it needs to work with Huawei and solve real security issues," Guo said.

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Huawei's Security Risks Outweigh Its Investment In Canada Huawei's Chief Executive Officer Liang Hua recently announced a plan to increase the company's investment in Canada. According to Liang, the Chinese telecom hegemon will expand its number of employees by 20 per cent and add another 200 jobs in research and development. In addition, Huawei will add another 15 per cent to its existing investments in Canada. The announcement came as tensions between the company and Canada reached an all-time high. The federal government has yet to make a decision on the company's participation in the Canadian 5G network, leaving Huawei's future in Canada unclear.

As noted by CNBC, Huawei claims the NDAA provision is a "bill of attainder," or a legislative act that declares a person or persons guilty of an act and punishes them without due process. Such legislation is deemed unconstitutional. Further, by codifying a prohibition under NDAA , the U . S . government is

The NDAA bans the U . S . government from doing business with Huawei or compatriot peer ZTE Corp or from doing business with any company that has Chinese foreign ministry spokesman Lu Kang said he had no information on whether China' s government may also seek legal action against the U . S

The privately owned firm has embarked on a public relations and legal offensive over the past two months as Washington lobbies allies to abandon Huawei when building fifth-generation (5G) mobile networks, centering on a 2017 Chinese law requiring companies cooperate with national intelligence work.

Founder and Chief Executive Ren Zhengfei has said Huawei, the world's biggest telecoms gear maker, has never and will never share data with China's government.

RETRIBUTION

The legal action and public relations outreach compare with a more restrained response in December emphasizing "trust in justice" when its chief financial officer, Sabrina Meng Wanzhou, was arrested in Vancouver at U.S. request.

The United States has accused Meng - Ren's daughter - of bank and wire fraud related to breaches of trade sanctions against Iran.

Huawei's legal action comes after Meng appeared in court on Wednesday during which her lawyer expressed concerns that the allegations have a political character, raising U.S. President Donald Trump's comments on the case.

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“ Lifting the NDAA ban will give the US Government the flexibility it needs to work with Huawei and solve real security issues,” Guo said. The privately owned firm has embarked on a public relations and legal offensive over the past two months as Washington lobbies allies to abandon Huawei when

Huawei has filed a lawsuit against the US government over a ban that restricts federal agencies from using its products. It said the US failed to provide evidence to support the ban , and the firm also rejected claims it had links to the Chinese government .

Separately, Meng, who is fighting extradition, is suing Canada's government for procedural wrongs in her arrest.

The case had strained relations with China, which this week accused two arrested Canadians of stealing state secrets in a move widely seen as retribution for Meng's arrest.

While Meng is under house arrest in Vancouver, it is unclear where the two Canadians are being detained in China. Sources previously told Reuters that at least one of the Canadians did not have access to legal representation.

CHANGE OF TUNE

Ren met international media for the first time in several years in mid-January, calling U.S. President Donald Trump "great" and refraining from commenting directly on Meng's case. Shifting tone, Ren in mid-February said Meng's arrest was politically motivated and "not acceptable".

Long before Trump initiated a trade war with China, Huawei's activities were under scrutiny by U.S. authorities, according to interviews with 10 people familiar with the Huawei probes and documents related to the investigations seen by Reuters.

(Reporting by Sijia Jiang and Twinnie Siu; Editing by James Pomfret and Christopher Cushing)

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