China's telecoms giant Huawei is preparing a legal counterpunch against new moves by United States regulators to bar the company from accessing $8.5 billion in U.S. federal funds for services and equipment, a report said Friday.
The Common Service Fund is used to subsidise telecommunication companies and tools primarily in rural areas of the United States of America, a market the place Huawei gear has established a presence regardless of the rising U.S. strain on the corporate. "Instead, the FCC simply assumes, based on a mistaken view of Chinese law, that Huawei might come under Chinese government control".
The Rural Wireless Association, which represents operators with fewer than 100,000 customers, estimates a quarter of its members have Chinese-made kit in their networks and estimates it could cost up to $1 billion to replace it.
The article characterised the upcoming lawsuit as part of a broader campaign by Huawei of more forcefully challenging USA efforts to restrict its business with a combination of lawsuits and increased spending on lobbyists to defend the company in Congress and the Trump administration. This move from the US Commerce Department saw Huawei lose Google's Android OS support. The tech giant has 30 days to file the appeal at the Fifth Circuit Court of Appeals in New Orleans, Louisiana.
President Trump in May blacklisted Huawei and issued an executive order barring US companies from buying telecommunications products from the tech giant, citing national security risks, though the administration has loosened its restraints on the company in recent weeks.
Meanwhile, US companies want to be able to do business with the Chinese firm, arguing that the sanctions have cut off a valuable source of revenue. The most high profile recipient of a licence to date has been Microsoft, which supplies the Windows 10 operating system for Huawei laptops.