Huawei Files Petition in Court Against The US Subsidy Ban


Huawei has filed a petition to a US court to overturn a ban imposed to the company last month.

According to the petition, the ban bars rural companies from using government subsidy funds to buy equipment from Huawei together with Its rival telecommunication company ZTE.

The ban is based on grounds that the two companies are a threat to national security.

Previously Us companies were warned against buying any types of equipment from the telcos citing them as foreign adversaries.

The US Federal Communication Commission(FCC)  summoned dependent telco’s to cancel or replace existing services. The commission went ahead to ban Huawei and ZTE from accessing the $8.5 billion a year Universal Service Fund (USF)

According to the FCC, the funds are meant to support the rural companies to replace the equipment previously bought from the Chinese telcos.

By terming the companies a national security threat this means they are not liable to receive any funds.

Us and China have had trade wars which led to the assumptions that the Chineses government could exploit the companies to spy on Americans.

Yahoo reveals that the US campaign against Huawei is motivated by fears that the company is a potential security threat citing from their founder Ren Zhengfei an  EX army engineer for China.

Last month, Ajit Pai, the chairman of the FCC said that the two companies have a close relationship with China’s communist and military apparatus which concludes that they are indeed a threat to the US.

Ahead of the initial ban, the two companies were been granted permits to continue to operate in the US with the latest one end to end in February 2020.

According to a source from the Verge, the companies were granted the licenses only to give more room for rural wireless carriers that rely on Huawei products to change their equipment.

Huawei has constantly denied the allegations which Washington has provided no proof for their accusations.

The company also termed the ruling unlawful and exceeds its statutory roles as a commission.

The petition if passed will give Huawei access to have rural companies purchase equipment using the funds as well as recall back their legal protections.

According to Andy Purdy, the Chief Security Officer for Huawei USA, ” This is our opportunity to use one fo the legally permissible mechanisms to try to block the United States government  from destroying us around the world,”

Glen Nager the lead counsel for Huawei in an interview with CNBC, concluded that the allegations are based on a fundamental misunderstanding of the Chinese law on unsound, baseless, unreliable and inadmissible accusations that lack evidence.

She also added that FCC’s decision to bar the companies from using the funds to buy equipment from Huawei is unlawful and exceeds the agency’s statutory authority as it is not allowed to make national security judgement.