US court rejects challenge to Huawei federal law restricting business
A federal judge in Texas on Tuesday rejected the Chinese telecom equipment maker Huawei Technologies Co. Ltd, a constitutional challenge to US law, which limits its ability to do business with federal agencies and their contractors.
In the 57-page decision, US District Judge Amos Mazzanti ruled in favor of the United States and noted that Congress has acted within the limits of its competence by incorporating restriction National Defense Authorization Act, which also targeted the Chinese company ZTE Corp.
Huawei spokesman said the company was disappointed with the loss.
“We understand that it is of paramount importance to national security, the approach chosen by the US government in 2019 NDAA gives a false sense of protection and at the same time undermines the constitutional rights of Huawei. We will continue to consider legal options, “the spokesman said.
The Board was pleased with the ruling, Justice Department spokesman said.
The decision comes as the United States has an extensive ongoing effort to prevent Huawei’s technology is used in the sensitive telecommunications equipment in the United States or elsewhere.
Huawei filed a lawsuit in March 2019 saying the law was limited by US business was unconstitutional.
Huawei had complained to 889 of the National Defense Authorization Act, signed by the President of the United States according to the law of Donald Trump, which prevents federal agencies and their contractors to acquire the equipment and services. Huawei lost a summary judgment decision.
Among its many arguments, Huawei claimed that the NDAA was overbroad restriction on sales and violated proper.
Judge Mazzanti US District Court for the Eastern District of Texas disagree in both cases, saying that the NDAA was “appropriately tailored burdens” and said he was unpersuaded that the law impairs the Huawei existing and future agreements.
Huawei said the lawsuit was “devices and services are subject to advanced security procedures and back doors, implants or other intentional vulnerabilities have been documented in any of the more than 170 countries around the world, with Huawei’s equipment and services are used.”
Although Huawei had very little share of the US market prior to the bill, it is the world’s largest telecoms gear maker and aims to be at the forefront of the global as the fifth-generation (5G) mobile networks and services.
Trump administration also is considering changing the settings to enable the US to prevent shipments of chips Huawei companies such as Taiwan Semiconductor Manufacturing Co. Ltd., the world’s largest contract chipmaker, a source familiar with the matter said the two.
