US Judge Dismisses Huawei Lawsuit Over Contracts Ban

NEW YORK (AP) — A federal judge in Texas has dismissed Chinese tech giant Huawei’s lawsuit challenging a U.S. law that bars the government and its contractors from using Huawei equipment due to security concerns.

The lawsuit, filed last March, sought to declare the law unconstitutional. Huawei said the law singled out the company for punishment, denied it due process and amounted to a “death penalty.”

FILE - In this Oct. 29, 2019, file photo visitors look at the surveillance cameras by China's telecoms equipment giant Huawei on display at the China Public Security Expo in Shenzhen, China's Guangdong province. A federal judge in Texas has dismissed Chinese tech giant Huawei's lawsuit challenging a U.S. law that bars the government and its contractors from using Huawei equipment because of security concerns. (AP Photo/Andy Wong, File)

But a court ruled Tuesday that the ban isn’t punitive and that the federal government has the right to take its business elsewhere.

Huawei, China’s first global tech brand, is at the center of U.S.-Chinese tensions over technology competition and digital spying. The company has spent years trying to put to rest accusations that it facilitates Chinese spying and that is controlled by the ruling Communist Party.

The lawsuit was filed in Plano, Texas, the headquarters of Huawei’s U.S. operations. It was dismissed before going to trial. Experts had described Huawei’s challenge as a long shot, but said the company didn’t have many other options to challenge the law.

Huawei said it was disappointed and will consider further legal options.

The Trump administration has been aggressively lobbying Western allies to avoid Huawei’s equipment for next-generation 5G cellular networks. Administration officials say Huawei can give the Chinese government backdoor access to data, allegations that the company rejects.

House Speaker Nancy Pelosi has also spoken out against Huawei, including during a talk with reporters in Brussels on Monday, turning U.S. opposition to Huawei into a bipartisan effort.

A former vice president of engineering for U.S. company Solarflare Communications said in a lawsuit this week that the company fired and defamed him to retaliate for his refusal to participate with the government in “illegal international espionage” involving embedding “spy software for transmission to Chinese customers.” That lawsuit was filed in San Diego Superior Court.

(Courthouse News contributed to this report.)

Categories / Business, Politics, Technology

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