Published: Sat, November 30, 2019
Markets | By Otis Pena

Huawei plans legal challenge over exclusion from federal subsidies in US

Huawei plans legal challenge over exclusion from federal subsidies in US

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.

The order also pushes carriers that get USF funds to replace any Huawei or ZTE gear they already have in place, with FCC Chairman Ajit Pai also proposing a reimbursement program to help out with this.

Huawei is expected to file a suit challenging the FCC decision next week in the Fifth Circuit Court of Appeals in New Orleans, the Journal reported, citing people familiar with the matter.

A Huawei spokeswoman declined to comment, but the company invited AFP and other media to the headquarters in the southern city of Shenzhen on Thursday for an unspecified announcement.

In a statement last week, Huawei said that the FCC decision "was based on selective information, insinuations and wrong assumptions" and that blocking access to the fund will harm U.S. consumers. The move could eliminate a key source of funding for Huawei's biggest US business - telecoms equipment.

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Trump has since offered temporary reprieves for Huawei to allow service providers covering remote rural areas time to comply with the ban, USA officials say.

ZTE got here near collapse final 12 months after American firms had been prevented from promoting it very important elements over its continued dealings with Iran and North Korea.

Trump later allowed ZTE to resume imports under tough conditions.

Huawei's chief monetary officer, Meng Wanzhou, who can be the daughter of the corporate's founder and CEO, was arrested in Canada final 12 months and is now combating extradition to the U.S. on fraud and conspiracy expenses tied to United States sanctions.

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