Following moves by the United States to blacklist the largest provider of telecom equipment in the world, Huawei is now firing back. A motion filed in court by the company argues that the US government’s use of a military spending provision to limit Huawei’s sales is unconstitutional.
While US officials have repeatedly claimed that Huawei is a threat to national security, the tech giant’s chief legal officer, Song Liuping, said that the US government has yet to provide evidence of its claims, and it did not give Huawei an opportunity to respond to its accusations before taking action.
“The fact is the US government has provided no evidence to show that Huawei is a security threat. There is no gun, no smoke, only speculation,” said Song Liuping.
Huawei initially filed a lawsuit in March, with the Eastern District Court of Texas, arguing that the US government used the 2019 National Defense Authorization Act to illegally target Chinese firms, by specifically listing Huawei and ZTE in its text. Now, by filing a motion for summary judgment, the tech giant is seeking to accelerate the legal process, as it calls for a judge to determine whether the government violated the company’s due process rights by moving to blacklist it without a fair trial.
Huawei is also threatening more legal action, following reports that at least four packages containing paper work that were addressed to the company’s offices in Asia, ended up at FedEx headquarters in the United States.
A spokesperson for China’s Foreign Ministry called for an explanation, and said that it was not a good look for a big company like FedEx to continue to have shipments go astray.
In response, FedEx has issued various statements apologizing for the incident and pledging to review its logistics and document delivery support requirements.
Concerns still remain about whether China will retaliate by banning the sale of Apple products, but even if that doesn’t happen, financial analysts are warning that the ongoing conflict has the power to cut Apple sales in half in China.
According to a report from Citi, the US-China trade situation will result in a slowdown of Apple iPhone demand in China, as residents shift their purchasing preference to Chinese national brands.
Now it remains to be seen just how long this Trade War between the world’s two largest economies will continue, and if courts here in the US will determine that the ban against Huawei is, in fact, unconstitutional.