A US judge has rejected a lawsuit filed by Chinese tech company Huawei challenging the constitutionality of a law that banned federal agencies from buying its products.
US District Judge, Amos Mazzant ruled in favour of the United States on Tuesday, concluding that the Congress had the power to restrict federal agencies from doing business with Huawei and ZTE, another Chinese tech company targeted by the US law.
Mr Mazzant however, pushed back on those claims, writing in his 57-page ruling that “the court finds Huawei’s arguments unpersuasive.”
“Contracting with the federal government is a privilege, not a constitutionally guaranteed right — at least not as far as this court is aware”.
Huawei, the world’s biggest maker of telecommunications equipment and a leading smartphone brand, had argued that part of the National Defense Authorization Act (NDAA) infringed on the company’s constitutional rights and harmed its existing and future business.
The company also said in a statement that it is disappointed in the ruling
“While we understand the paramount significance of national security, the approach taken by the US government in the 2019 NDAA provides a false sense of protection while undermining Huawei’s constitutional rights. We will continue to consider further legal options”.
Meanwhile, Washington maintains that Huawei poses a national security threat and has taken several steps to curb its business, including barring US companies from supplying the Chinese firm with key tech and software.
The Trump administration has also argued that installing Huawei’s equipment in US networks could allow Chinese spies to eavesdrop on sensitive US communications.
Huawei denies the allegations and says none of its products pose a national security risk.