Huawei to sue US for banning federal agencies from using its products

Huawei chief executive Ren Zhengfei - AP
Huawei chief executive Ren Zhengfei - AP

Huawei is preparing to sue the US government for banning federal agencies from using its technology, according to a new report.

The Chinese firm is said to be readying to file a lawsuit on Thursday which accuses the US of acting unconstitutionally. 

The US government has blocked the use of Huawei technology within federal agencies over concerns that the company’s close relation with the Chinese government could allow its technology to be used for espionage.

However, Huawei has consistently denied allegations that its technology could be used for spying.

The company’s chief executive and founder, Ren Zhengfei, made a rare public appearance in January in which he denied that Huawei would ever accept a request by the Chinese government to hand over customer data.

On Monday, a Chinese government spokesman accused the US of using a double standard in claiming Chinese law requires telecoms giant Huawei to violate other countries' information security.

Some US officials were taking China's national security law out of context and "playing up the so-called security risks" associated with Chinese companies, the spokesman for the national legislature, Zhang Yesui, said.

The New York Times, which first reported the news, said Huawei’s lawsuit against the US would argue that the US is singling out the business for punishment without placing it on trial, citing two sources familiar with the matter. 

The newspaper said that the lawsuit will be filed later this week in the Eastern District of Texas, where Huawei’s US headquarters is based.

It follows a separate lawsuit filed by Huawei CFO, Meng Wanzhou, against Canada alleging she was wrongfully detained and searched after she was arrested in Vancouver while on her way to Mexico.

The company’s finance head and daughter of its founder was arrested over charges of fraud linked to breaching sanctions against Iran.

The lawsuit accused the Canada Border Services Agency of subjecting Ms Meng "to a detention, search and interrogation to extract evidence from her before she was arrested".

Following her arrest in December, China detained two Canadians, in a move many saw as a direct attempt by the country to hasten Ms Meng's release.

On Monday, China's official news agency, Xinhua, said authorities were accusing the two Canadians of having worked together to steal state secrets. The two cases have, up until this point, not been linked, and China had not provided detailed allegations. 

Canadian prime minister Justin Trudeau responded by saying he was "obviously very concerned by this position that China has taken".

"It is unfortunate that China continues to move forward on these arbitrary detentions."

Canadian Department of Justice officials decided last week that proceedings to extradite Ms Meng to the US can proceed. Currently on bail in Vancouver, the executive could face a trial in the US following an extradition case to be heard in the Canadian courts.

A Huawei spokesman declined to comment.