Huawei sues Commerce Department over seized equipment

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Huawei sues Commerce Department over seized equipment
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Chinese telecom giant Huawei has filed a civil lawsuit against the U.S. government. It's accusing the Commerce Department of mishandling equipment that it seized from the company in 2017

Chinese telecom giant Huawei has filed a civil lawsuit against the U.S. government accusing the Commerce Department of mishandling equipment that it seized from the company in 2017.filed Friday, the U.S. government took possession of several pieces of equipment, which were being shipped from an independent testing facility in the United States to China, in order to determine if the technology was subject to export controls.

Huawei is not seeking financial compensation but instead wants the court to force the Commerce Department to decide whether export control clearance is necessary and, if not, release the equipment.The lawsuit comes as tensions between Huawei and the U.S. government have reached a fever pitch. The Justice Department charged Huawei earlier this year with violating U.S. sanctions against Iran and stealing trade secrets from U.S. competitors. Meanwhile, Huawei sued the U.S.government, saying a law passed by Congress that banned federal agencies from doing business with the company was unconstitutional.

What's more, the Commerce Department slapped severe trade restrictions on Huawei last month that prevent U.S. companies from selling vital equipment to the company, a penalty that Huawei founder Ren Zhengfei recently said could cost the company $30 billion in lost sales over two years.

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