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Huawei suing US FCC over National Security Risk Allegations

Amidst the US-China trade disputes, Huawei is still facing issues with the US Government. The Chinese firm is now aiming to challenge a decision made by the US Federal Communication Commission (FCC) that has banned Huawei from using government funds to buy its telecommunications networking equipment.

Earlier this year, Huawei was placed on the ‘Entity List‘ which disallowed other US-based companies to have trade relations with the company. This move from the US Commerce Department saw Huawei lose Google‘s Android OS support. Since then, the company is still facing problems with the Government after allegations were made over the risk of national security.

Huawei suing US FCC over National Security Risk Allegations

According to the FCC, Chinese vendors have largely been excluded from the US market, with many major network carriers using radio equipments from Ericsson, Nokia, and others. Notably, a small number of providers are still using kits from Huawei and ZTE due to it being relatively inexpensive. However, the FCC has voted on a measure that mandates US operators to remove and replace Huawei kit from their networks. The Rural Wireless Association, which represents operators with fewer than 100,000 customers estimates that the replacement of Chinese kit would cost up to 1 billion dollars; and this is just a quarter of its members.

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Huawei plans to file an appeal against this decision. The tech giant has 30 days to file the appeal at the Fifth Circuit Court of Appeals in New Orleans, Louisiana. 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. 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.

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The US Government is currently issuing a license for such trade and has received 300 applications. So far, about half have been rejected while the other half have been approved, such as Microsoft supplying Windows 10 OS to Huawei laptops.

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