Huawei files new legal action against the US over ban

Under-fire Chinese technology company Huawei has filed new legal action against the US government to scrap its ban as ordered by president Donald Trump in March.

In March Huawei filed a lawsuit against the US claiming that legislation which bans government agencies from buying Huawei equipment as illegal – under the National Defense Authorisation Act (NDAA) – as unconstitutional.

On Wednesday, Huwei was back in Washington to file a motion for summary judgment in its court case, ‘to accelerate the process to halt illegal action against the company’. It’s a request that the court rule in Huawei’s favour as a matter of law.

“Huawei today filed a motion for summary judgment as part of the process to challenge the constitutionality of Section 889 of the 2019 National Defense Authorisation Act (2019 NDAA),” the company said in a statement.

It also called on the US government to halt its state-sanctioned campaign against Huawei because it will not deliver cybersecurity.

Banning Huawei using cybersecurity as an excuse “will do nothing to make networks more secure. They provide a false sense of security, and distract attention from the real challenges we face,” said Huawei’s chief legal officer, Song Liuping.

“Politicians in the US are using the strength of an entire nation to come after a private company,” Song said. “This is not normal. Almost never seen in history.”

“The US government has provided no evidence to show that Huawei is a security threat. There is no gun, no smoke. Only speculation,” Song stressed.

Data from Gartner, out Tuesday, showed that Huawei has solidified its position the No. 2 smartphone vendor worldwide – and continued to reduce the gap with Samsung.

Huawei achieved the highest year-over-year growth among the world’s top five, growing 44.5%. Sales of Huawei smartphones grew in all regions. “Huawei did particularly well in two of its biggest regions, Europe and Greater China, where its smartphone sales grew by 69% and 33%, respectively,” said Anshul Gupta, senior research director at Gartner.

Huawei’s continued dominance in Greater China, where it commanded a 29.5% market share, helped it secure the No. 2 global smartphone vendor ranking in the first quarter of 2019.

“Unavailability of Google apps and services on Huawei smartphones, if implemented, will upset Huawei’s international smartphone business which is almost half of its worldwide phone business. Not the least it brings apprehension among buyers, limiting Huawei’s growth in the near term,” Gupta warned.

A hearing on Huawei’s motion for summary judgement is scheduled for 19 September 2019.

Plan B

Earlier in May, the US Department of Commerce blacklisted Huawei by placing it on an entity list, meaning that US firms cannot trade with the company unless they have a licence.

The department then granted a 90-day relief for certain US broadband companies and wireless customers using Huawei equipment.

Should Huawei’s legal bid fail, the group says it could have its own operating system for smartphones and laptops up and running within the next few months.

Yu Chengdong, the CEO of Huawei’s Consumer Business Group, told CNBC recently that a version of the new system for China, which would be compatible with all Android apps, could be ready by September (Autumn), with an international version of the operating system ready for international markets by the first or second quarter of 2020.

Read: Huawei smartphone sales surge as it pulls away from iPhone

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Huawei files new legal action against the US over ban