US judge rejects Huawei challenge

A US federal judge has rejected Huawei's challenge to do business with US federal agencies.
A US federal judge has rejected Huawei's challenge to do business with US federal agencies.

Chinese telecoms giant and smartphone producer Huawei has lost a legal challenge against the government of the United States.

The firm began proceedings last March in a bid to overturn a US government ban on its agencies purchasing and operating Huawei's technology and services.

Judge Amos Mazzant rejected the suit in a Texas court on Tuesday.

In a 57-page decision, he found that the US government did not overstep its authority.

Mazzant argued that it is a privilege rather than a constitutionally guaranteed right to do business with such government agencies.

Huawei did not immediately respond to a request for comment.

The firm had argued that the 2018 law signed by US President Donald Trump forbidding business between Huawei and US agencies was not only illegal but also prevented Huawei from fair participation in competition.

Trump imposed the law for security reasons. The US accuses Huawei of facilitating Chinese government spying and has put pressure on Western allies to not use the company's technology.

Huawei, the world's largest maker of telecommunications network equipment and the second-biggest smartphone manufacturer, was placed on the US "entity list" in May, blocking the Shenzhen-based firm from doing business with US companies and disrupting their ability to source key components.

Australian Associated Press