Huawei takes US government to court

2 min readUpdated May 15, 2025Mar 11, 201912:31 AM

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Huawei lost its trade mark reticence when it announced yesterday that it is suing the US government for banning federal agencies from buying its products.

The complaint filed in a U.S. federal court challenges the constitutionality of Section 889 of the 2019 National Defense Authorization Act (NDAA). Through this action, Huawei seeks a declaratory judgment that the restrictions targeting Huawei are unconstitutional, and a permanent injunction against these restrictions.

From Huawei’s perspective, the NDAA restrictions prevent the company from providing more advanced 5G technologies to U.S. consumers, which will delay the commercial application of 5G, in turn, impeding efforts to improve the performance of 5G networks in the U.S.

“The U.S. Congress has repeatedly failed to produce any evidence to support its restrictions on Huawei products. We are compelled to take this legal action as a proper and last resort,” Guo Ping, Huawei rotating chairman said in a press conference held yesterday at company’s Shenzhen campus.

“This ban not only is unlawful, but also restricts Huawei from engaging in fair competition, ultimately harming U.S. consumers,” he said.

The lawsuit was filed in a U.S. District Court in Plano, Texas. According to the complaint, Section 889 of the 2019 NDAA not only bars all U.S. Government agencies from buying Huawei equipment and services, but also bars them from contracting with or awarding grants or loans to third parties who buy Huawei equipment or services, without any executive or judicial process.

“consumers, which will delay the commercial application of 5G, in turn, impeding efforts to improve the performance of 5G networks in the U.S.”

The Chinese telecoms and IT equipment vender claims this violates the Bill of Attainder Clause and the Due Process Clause. The Huawei lawsuit also claims the violation of the Separation-of-Powers principles enshrined in the U.S. Constitution, because Congress is both making the law, and attempting to adjudicate and execute it.

“Section 889 is based on numerous false, unproven, and untested propositions,’ said Song Liuping, Huawei’s chief legal officer.” Contrary to the statute’s premise, Huawei is not owned, controlled, or influenced by the Chinese government.”

He added: “Moreover, Huawei has an excellent security record and program. No contrary evidence has been offered.”

Citing industry sources, Huawei claims that allowing them to compete would reduce the cost of wireless infrastructure by between 15% and 40%. This would save North America at least US$20 billion over the next four years.

“If this law is set aside, as it should be, Huawei can bring more advanced technologies to the United States and help it build the best 5G networks,” Guo Ping said. “Huawei is willing to address the U.S. Government’s security concerns. Lifting the NDAA ban will give the U.S. Government the flexibility it needs to work with Huawei and solve real security issues.”

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What this means

Huawei's legal challenge is a bold move, aiming to overturn restrictions that impede its ability to offer advanced 5G. While seemingly a long shot given the US government's stance, it pressures competitors who benefit from Huawei's exclusion and highlights the commercial cost of banning innovation. This contrasts with more conventional market entries and expansions seen in Asia, such as Alo Yoga's partnership with Alibaba's Tmall for market penetration, or Yum China's direct store count growth. The move also carries a significant risk for Huawei; a failed lawsuit would cement its exclusion. Success, however, would force the US to address alleged security concerns more directly. We will observe the U.S. District Court's initial ruling in Plano, Texas.

Wei Zhang · Retail News Asia newsroom

Questions & Answers

What specific part of the US law is Huawei challenging in court?

Huawei is challenging Section 889 of the 2019 National Defense Authorization Act (NDAA). This section bars US government agencies from buying its products and services, and from working with third parties who do.

What is Huawei hoping to achieve by taking legal action against the US government?

Huawei is seeking a declaratory judgment that the restrictions are unconstitutional and a permanent injunction against them. It aims to restore its ability to provide advanced 5G technologies and compete fairly in the US market.

Which constitutional principles does Huawei claim the NDAA ban violates?

Huawei claims the ban violates the Bill of Attainder Clause, the Due Process Clause, and the Separation-of-Powers principles enshrined in the US Constitution. They argue Congress is overstepping its legislative role.

How does Huawei suggest the ban impacts the development of 5G networks in the US?

Huawei states the restrictions prevent them from providing more advanced 5G technologies to US consumers, which will delay the commercial application of 5G and impede efforts to improve network performance in the country.

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