Huawei sues US Government for unconstitutional sales ban

In Shenzhen, China, Huawei has announced today that it has filed a complaint in the US federal court to challenge constitutionality of Section 889 of the 2019 National Defense Authorization Act (NDAA).

Huawei's press conference in China

To recall, the US government, trying to shut Huawei down, has been trying to persuade other nations to ban the company's products in their markets. The US government was trying to persuade other allied countries to ban Huawei as well.

Huawei said that the restrictions of US targeting the company are unconstitutional and unlawful. Huawei also said that it restricts the company from  engaging in fair competition which may ultimately harm US consumers.

In the press conference, Huawei also said US Congress has repeatedly failed to produce any evidence to support its restrictions on Huawei products.

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, Guo Ping, Huawei Rotating Chairman said. 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.

The lawsuit was filed in a US District Court in Plano, Texas.

Based on the complaint, Section 889 of the 2019 NDAA not only bars all US Government agencies from buying Huawei equipment and services, but also bars them from contracting with or awarding grants or loans to third parties who buy Huawei equipment or services, without any executive or judicial process. This violates the Bill of Attainder Clause and the Due Process Clause. It also violates the Separation-of-Powers principles enshrined in the US Constitution, because Congress is both making the law, and attempting to adjudicate and execute it.

John Suffolk, Huawei’s Global Cyber Security & Privacy Officer also stressed that they are proud to be the most open, transparent, and scrutinized company in the world.

Huawei said that the Huawei ban in US would delay the commercial application of 5G in the US. It will also leave US consumers paying higher prices for "inferior" products.

Estimates from industry sources said that if Huawei will be allowed to compete, it would reduce the cost of wireless infrastructure by 15 percent to 40 percent and would save North America at least USD 20 billion in the next four years.

Guo Ping, Huawei's Rotating Chairman also said that Huawei is willing to work with US and address their security concerns.

Huawei also stressed they are not owned, controlled, or influenced by the Chinese government. The global company also said that they have an excellent security record and program.

To read Huawei's full statement, click here.