US Federal Communications Commission (FCC) has imposed new restrictions on the Chinese multinational company, Huawei Technologies
Huawei Technologies Co. Ltd., the Chinese multinational technology company has sued the United States (U.S.) Federal Communications Commission (FCC), after the latter imposed new restrictions on the former, limiting them from whatever little business they have left in the U.S.
Huawei has filed a petition with the Fifth Circuit Court in New Orleans. Huawei’s lawsuit argues that the FCC order is unlawful because it gives no evidence of the national security threat that the company poses, which is in violation of the US Constitution and other laws. Huawei also claimed that none of its equipment pose a threat to national security.
The move came after FCC announced in November 2019 that rural American mobile carriers will not get any federal subsidies, which are in tune of U.S. $ 8.5 billion, if they purchase equipment from Huawei or ZTE Corp., another Chinese telecommunication equipment company.
The FCC is an independent agency of the U.S. Government created by statute to regulate interstate communications by radio, television, wire, satellite, and cable. The FCC maintains jurisdiction over the areas of broadband access, fair competition, radio frequency use, media responsibility, public safety, and homeland security.
FCC believes that Huawei works for the Chinese Government and poses a security threat to U.S. It also said that as per Chinese law, such companies are required to provide intelligence services to their Government.
Addressing a Press Conference, the Chief Legal Officer of Huawei Song Liuping said, “Banning a company like Huawei, just because we started in China – this does not solve cybersecurity challenges.”
He also accused the Chairman of FCC – Ajit Pai of targeting Huawei just because it is a Chinese company. “He has tried to spread fear about Huawei. He uses words like ‘back door’ to scare people, but offers no proof,” Song added.
Huawei also said that its revenue from U.S. is minimal as compared to its global revenue, which stood at U.S. $ 105 billion in the last year.
The Vice-President of Corporate Communications for Huawei – Karl Song said in a media statement that the FCC rule threatened improvements to connectivity in rural America. He even said that it would cost hundreds of millions of dollars and even force some small carriers to go bankrupt.
Separately, The Director for Office of Media Relations at FCC – Brian Hart has announced to propose U.S. $ 99 billion in funding over the next decade to boost fifth generation (5G) wireless telecommunications coverage in rural U.S. areas.
For the records, the Chief Financial Officer of Huawei – Meng Wanzhou (also the daughter of Huawei’s founder, Ren Zhengfei) was arrested in Vancouver by Canadian Authorities on December 1, 2018. She has been accused of bank fraud with regards to sanctions against Iran. Meng was later released on bail with restrictions on freedom of movement. She is presently undergoing court trial with regards to extradition request placed by U.S.
She has filed a lawsuit in the British Columbia’s Supreme Court in Canada accusing Royal Canadian Mounted Police (RCMP), Canadian Border Services Agency (CBSA) and the Federal Government of unlawfully detaining her and interrogating her for 3 hours without even advising her of Constitutional Rights. Apart from this, her electronic gadgets, including an iPad and luggage were illegally searched without even informing her that she was under arrest.
