Author: Tronserve admin
Monday 2nd August 2021 01:39 AM
Huawei Sues FCC Over New Restrictions On U.S. Sales
Topline: Huawei has launched a legal challenge against the U.S. Federal Communications Commission (FCC) after the regulator classified it as a national security threat and barred it from accessing government subsidies for telecom infrastructure worth up to $8.5 billion. In a press conference on Thursday, Huawei said the FCC had not provided evidence to show that the company was a national security threat and called the decision “political.”
The Chinese tech giant announced it had filed a petition in New Orleans to challenge the decision. It comes after the FCC last month voted to designate the Chinese telecom titan a threat to national security over its ties to the Chinese government and fears its telecom infrastructure could be hijacked for spying.
At the time, the FCC’s Chairman, Ajit Pai, said the action was taken “based on evidence ... as well as longstanding concerns from executive and legislative branches.” The ruling meant that Huawei and ZTE were cut from the supplier list for the Universal Service Fund, which subsidizes telecom infrastructure purchases for small and rural carriers,
Tangent: Reuters reported that the National Security Council earlier this year considered banning Huawei from the U.S. banking system, which would essentially restrict the company from trading in dollars. The plan was shelved in favor of a blacklist.
Crucial quote: “Banning a company like Huawei, just because we started in China—this does not solve cyber security challenges,” said Huawei’s chief legal officer, Song Liuping. He added: “This decision, just like the entity list in May, is based on politics, not security,” Reuters reported. In May, the U.S. essentially blacklisted Huawei from trading with U.S. firms, by placing restrictions on companies being able to supply Huawei with components and technology.
Key background: Huawei has been caught at the center of the U.S-China trade war, but the lawsuit from the Shenzhen-based tech giant is the latest step in its fight to continue doing business in the United States and beyond. The FCC announced on Wednesday $9 billion of funding for the rollout out of 5G coverage in rural America, but for Huawei the real prize is likely winning huge 5G infrastructure contracts with U.S allies like the United Kingdom, and with other nations. Huawei’s lawsuit is just one front of an international PR blitz and a step-up in its lobbying spend in Washington to $1.9 million this year from $165,000 in 2018, according to lobbying watchdog OpenSecrets.