Huawei Might Be Planning To Sue The U.S. Government

Shaun Williams

This is not investment advice. The author has no position in any of the stocks mentioned. has a disclosure and ethics policy.

Despite word that the Trump administration might be considering settling matters with Huawei in an attempt to ease trade frustrations between the two nations, news has broke that the world's largest telecom equipment manufacturer might be gearing up to actually sue the United States government.

The lawsuit would focus around the U.S. National Defense Authorization Act, aka the NDAA, which was signed into law last year.

Related StoryFurqan Shahid
Huawei Watch Buds Is a Smartwatch That Comes With TWS Earbuds Inside

Huawei's chief complaint is that the NDAA singles out Chinese companies and calls for a reduction in spending with vendors hailing from China. The act also strengthens oversights on foreign investment proposals which could further cause headaches for suppliers such as Huawei.

The New York Times first broke the story and said that more than one source has confirmed the story as true. Huawei hasn't commented on the matter, but did set a press conference at its Shenzhen HQ this Thursday.

The NDAA and its clamp-down on Chinese companies has angered the Chinese amid a broader strike against the firm by the U.S. and its allies, who allege that Huawei and its 5G equipment aren't secure and could potentially give Chinese authorities access to foreign networks against their will. Huawei has adamantly denied the claims of any wrongdoing.

Its not entirely clear on which legal basis Huawei hopes to stand in its case against the U.S. government. The company is filing the claim in a Texas court and is likely to argue that the NDAA is a "bill of attainder", any act of law that singles our a person or group without any kind of fair trial.

Huawei isn't shy about pulling the litigation trigger. They're currently suing Canada, as of this past Sunday, for purportedly detaining and interrogating Meng Wanzhou, Huawei's CFO, this past December. That case in particular is a direct result of Canada approving a hearing on potentially allowing the U.S. to extradite Meng to stand trial in the States.

Share this story

Deal of the Day