It is being reported that Huawei is preparing to file for a court battle against the US Federal Communications Commission (FCC) after a ruling last week that said it would not offer subsidies to carriers who elected to use equipment from suspect companies (including Huawei and ZTE) in their infrastructure.
Chinese vendors have largely been excluded from the U.S. market, with major carriers opting to use radio equipment from Ericsson, Nokia and others. Huawei network equipment is used by many small and rural providers Internet.
Last week, the USA telecommunications regulator voted to propose requiring carriers to remove and replace equipment from Huawei from existing networks. "Instead, the FCC simply assumes, based on a mistaken view of Chinese law, that Huawei might come under Chinese government control".
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The article characterised the upcoming lawsuit as part of a broader campaign by Huawei of more forcefully challenging United States 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.
To contest the FCC order, Huawei has 30 days from November 22, the day the regulator voted. The company has frequently denied the allegations from the US Government regarding security risks and stated that no evidence of any unlawful conduct has been produced to date. The ban on dealing with USA suppliers has limited Huawei's access to key technologies such as Google's Android's operating system and has been a blow to its ambition of becoming the world's leading smartphone manufacturer. Additionally, US companies wish to partner with such Chinese firms and have argued that the ban also cuts off a valuable source of their revenue. Half of these submissions have been approved with the other half rejected.