Chinese tech giant Huawei is challenging a U.S. law that labels the company a security risk and would limit its access to the American market for telecom equipment.
Huawei Technologies Ltd.'s lawsuit, announced Thursday, asks a federal court to throw out a portion of this year's U.S. military appropriations act that bars the government and its contractors from using Huawei equipment on the grounds it is unconstitutional.It comes as the biggest global maker of network equipment for phone and internet companies fights U.S. efforts to persuade allies to exclude the company from next-generation telecom systems.
The company's chief financial officer, Meng Wanzhou, is fighting extradition to the U.S. after she was arrested in Vancouver, Canada on Dec. 1. U.S. prosecutors have filed charges accusing Meng, who is the daughter of Huawei's founder, of lying to banks about dealings with Iran.The company has about 40 percent of the global market for network gear but its U.S. sales evaporated after a congressional panel in 2012 cited the company and a Chinese competitor, ZTE Corp.
The Chinese government says Washington fabricates or exaggerates security concerns to block competition. European governments are balking at U.S. pressure to ban Huawei. The company has announced contracts with customers including the United Arab Emirates in the Middle East for network technology. Huawei executives say American security warnings have yet to affect sales outside the United States. The company's 2018 revenue forecast is $100 billion and its founder, Ren Zhengfei, said last month this year's target is $125 billion.
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