After spending most of May being hammered on by Washington, Chinese electronics company Huawei struck back on Tuesday. On May 28, it was reported the firm filed a motion of summary judgment in its ongoing lawsuit against the United States government.
The corporation is arguing the federal government’s attempt to shut it out of the U.S. marketplace violates the Constitution. It seems the Trump Administration’s broadsides against the telecommunications giant haven’t diminished its interest in doing business in America.
The United States vs. Huawei
Last August, the U.S. government passed an updated version of the National Defense Authorization Act (NDAA) that prohibits executive branch agencies from buying products from Huawei and ZTE. The new provision states that the two firms present a national security risk because of their country of origin. In March, the tech corporation sued the federal government for taking illegal action in passing the 2018 NDA update.
Huawei’s argument is that the Trump Administration’s new legislation effectively finds the tech company guilty of cyber espionage without due process. The firm’s suit was set to go before a judge in September, but the company filed a new motion to expedite the legal process. As of this writing, attorneys representing the United States haven’t responded to Huawei’s motion.
The Chinese conglomerate stands to make a lot of money if it wins its current court battle. Like many telecoms, Huawei seeks to cash in on the implementation of 5G technology by building new data networks across the globe. However, the Trump Administration’s view that the firm is an organ of the Chinese government has disrupted its plans.
In passing the 2018 version of the NDAA, the government blocked Huawei’s ability to contribute to America’s 5G infrastructure. The federal government’s efforts to paint the company as untrustworthy have led to it being blacklisted in Australia, Japan, and the United Kingdom. However, Huawei winning a major court battle against America could undo some of the damage Washington has done to its reputation.
Admittedly, the U.S. is unlikely to do business with Huawei again until the Sino-American trade war is resolved. But the company could use its legal victory to convince other nations that it can securely establish their 5G networks.
Malaysia Supports Huawei
Though Huawei is essentially persona non grata in the West, the firm just received some much-needed support from Southeast Asia. On May 30, Malaysian Prime Minister Mahathir Mohamad announced he intends to have the Chinese tech giant build the country’s digital infrastructure. Mahathir is investing in the corporation because it has greater resources and capabilities than Malaysia’s entire technology sector.
The politician also dismissed the Trump Administration’s allegations against Huawei by saying China has little interest in spying on Malaysia. Mahathir also chastised the U.S. government for its aggressive posture towards China. The Prime Minister noted that a military confrontation between the two superpowers would devastate the Southeast Asian region.
Huawei also received a show support from South Korea recently. On Thursday, the corporation opened a new 5G laboratory in the East Asian Republic. The firm is pouring $5 million into the lab to develop a local wireless high-speed data network. The corporation intended to invite the media to the facility’s opening but scaled back on its plans after Washington put it on a blacklist.
Taken together, Malaysia and South Korea’s defiance of the United States’ anti-Huawei campaign suggests the company’s future isn’t entirely bleak. Its potential exit from the international market won’t result in its closure if it becomes Asia’s number one telecom.