Huawei said Wednesday the tech giant will ask a United States court to throw out USA legislation that bars federal agencies from buying its products. In addition, the latest events generate concern among Huawei's potential customers, so the short-term business will also be reduced.
Huawei began the campaign with an opinion piece in the Wall Street Journal Sunday.
Chinese telecom giant Huawei is now leaning heavily on Korean and Taiwanese tech suppliers, after being banned by the USA government from buying US -made goods.
In March, Huawei filed a suit in the USA challenging the constitutional validity of Section 889 of the 2019 National Defense Authorization Act on which the ban on purchases of Huawei equipment by the federal government agencies is based.
Chief legal officer Song Liuping said yesterday that Huawei was exploring options, including "administrative and judicial means" to challenge the blacklisting.
Chinese smartphone maker Huawei asked a US court Wednesday to strike down a federal ban against its products, which the government says is based on national security concerns. In a separate move, it has also barred USA companies from selling components to Huawei, although that decision has been put on hold until August 19 to give American companies time to adjust.
In a statement Wednesday, Song focuses on harm to the US.
Huawei's smartphone sales grew in all regions and the company did particularly well in the European market, with sales up 69 percent.
Washington's clampdown on Huawei is part of a wider conflict simmering between the U.S. and China.
The U.S. ban on Huawei has already affected some wireless providers, reported The New York Times over the weekend.
Earlier this month, President Trump passed an executive order stopping US corporations from buying telecoms equipment from companies classed as national security risks. There is no gun, no smoke.
Song added that using cybersecurity as an excuse to blacklist Huawei would have no effect on global safety, instead just offering a "false sense of security".
Huawei inked a $10 billion credit line with the China Development Bank (CDB) in 2004 to provide low-priced financing to customers buying its telecom gear.
"It is always hard dealing with companies considered national treasures", he said. The act bans government agencies from contracting with Huawei or companies that use the company's equipment.
The Shenzhen-based company said a hearing on the motion was set for September 19.
In the Journal article, Song argues that the U.S. decision "provides Huawei with no opportunity to rebut the accusations, to present evidence in its defense, or to avail itself of other procedures that impartial adjudicators provide to ensure a fair search for the truth".
Song said the USA campaign against the company violates market norms and will bring harm to US consumers as well as 3.1 billion customers around the world that Song said rely on Huawei products and services. The interview, taped Tuesday, aired on Fox Business Network Wednesday.
Song said Huawei has prepared for years for unforeseen "extremities" in the market.
Thanks to more than $200 million previous year in Chinese government grants, state financing for customers in the developing world, and guaranteed market share in China, Huawei is able to offer advanced equipment at a fraction of the price of its competitors.
To recap, two weeks ago Huawei was placed on a blocked entities list which prevented United States companies from trading with them. If the USA does not exercise restraint, it will see that "China is far from running out of cards, and we have the will and determination to fight the U.S.to the end", the editorial said.