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Huawei's war with America just went up a level, with the Chinese company planning to sue the US government

Mar 4, 2019, 18:03 IST

Huawei CEO Ren Zhengfei.The Asahi Shimbun/The Asahi Shimbun via Getty Images

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  • Huawei is planning to file a lawsuit against the US government for banning its federal agencies from using the Chinese firm's telecom equipment, The New York Times reports.
  • A source told the Times that Huawei will argue a piece of law from last year, which stopped agencies from using Huawei telecom equipment, is a "bill of attainder" - an unconstitutional piece of legislation.
  • The US has ramped up political pressure on Huawei in recent months, requesting the extradition of its CFO and lobbying allies to reject its 5G equipment.

In a new twist in the Huawei-US political saga, the Chinese phone giant is getting ready to sue the US government.

Citing two anonymous sources familiar with the matter, The New York Times reports that Huawei will file a lawsuit later this week in the Eastern District of Texas, where the company's US offices are based. Specifically, the company plans to sue the US for banning federal agencies from using Huawei tech.

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The US has long voiced concerns that Huawei technology - along with fellow Chinese telecoms company ZTE - could pose a security risk, alleging that the company could act as a backdoor for the Chinese government to spy. Huawei denies the allegations.

Read more: The Trump administration is warning allies to stay away from a powerful Chinese company - but not everyone's listening

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According to the Times, Huawei's suit is going to center on a section of a defense spending authorization law which was approved last year, blocking federal agencies from using Huawei and ZTE telecom equipment.

One of the sources told the Times that Huawei is likely to argue the provision is a "bill of attainder," a piece of law that singles out a person or group of people as guilty of a crime and prescribes their punishment without trial. Bills of attainder are banned under the US Constitution.

It follows a Huawei executive taking legal action against Canada this week. CFO Meng Wanzhou on Sunday filed a lawsuit against the Canadian government, border agency, and national police force, claiming that officials interrogated her "under the guise of a routine customs" examination. She is due in court on Wednesday to set a date for extradition proceedings to start.

In recent months, the US has ramped up political pressure on Huawei, calling for CFO Meng to be extradited from Canada after her arrest last year, accusing the firm of stealing US company trade secrets, and lobbying allied countries to reject its 5G equipment.

Huawei declined to comment on the Times report when contacted by Business Insider.

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