Displaying items by tag: Block

Chinese telecommunications behemoth Huawei is preparing to take the US government to court in an effort to the challenge the decision taken by the US congress which prohibits federal agencies from using its equipment.

The New York Times is reporting that the embattled Chinese vendor is now preparing to file a lawsuit against that legislation which was passed through the US House of Representatives.

Sources close to Huawei have leaked that the telecommunications company plans to argue the measure amounts to a so-called bill of attainder, which penalizes the vendor for a penalty without the benefit of a trial, which is illegal under the US Constitution.

The US has adopted a very aggressive approach towards Huawei and ZTE, and the latter was almost pushed the point of bankruptcy following draconian measures implemented by the US Department of Commerce.

In August of last year, President Donald Trump signed into law a defence spending bill which included a clause banning government agencies and contractors from using equipment from Huawei and fellow Chinese vendor ZTE.

At the time, Huawei labelled the bill ‘misguided and unconstitutional’ – and blasted the decision taken by the Trump administration.

The lawsuit by Huawei is expected to be filed on 7 March in a federal court in Texas, where Huawei has its US headquarters.

The move comes as Huawei battles assertions from the US that it poses a security threat to telecommunications networks. The US has lobbied other nations in banning Huawei from their 5G networks, such as Australia and New Zealand, and is also attempting to pressure European countries such as the UK and France.

Secretary of State Mike Pompeo has said countries that use Huawei equipment risk losing the US as a business and trade partner over the alleged security threat.

However, during his keynote address on stage at MWC19 Barcelona last week, Huawei rotating chairman Guo Ping blasted the US campaign against the company saying officials have “no evidence, nothing” to back up their claims.

Published in Telecom Vendors

A Chinese company’s attempt to purchase a German technology firm that specializes in the semiconductor industry has been blocked by the US Treasury. A review conducted by the Committee on Foreign Investment in the USA - which is chaired by out-going US President Barack Obama, found the potential takeover posed too many risks to national security.

It was able to block the purchase of German technology company Aixtron by blocking the inclusion of Aixtron’s US business in the proposed deal. In a statement issued by the US Treasury in relation to the attempted takeover, it said that the proposed purchase could place sensitive technology with potential military applications in Chinese hands.

A spokesman for the US treasury said: “CFIUS and the president assess that the transaction poses a risk to the national security of the United States that cannot be resolved through mitigation.”

It said publicly-traded Aixtron SE's expertise in technology key to making advanced compound semiconductors used for LED lighting, lasers and solar cells also has military applications.
Washington does not want to see such technology end up in the hands of the Chinese government-backed company which wants to buy Aixtron, Grand Chip Investment.

The Treasury said Aixtron's US business is an important contributor to that technology. In late October, the German government withdrew its initial approval for the 670 million euro ($714 million) takeover after Washington raised security concerns. Citing German intelligence sources, Handelsblatt daily reported that the United States had expressed fears that China could use Aixtron technology to bolster its nuclear program.

After receiving the information, the German economy ministry said on October 24 that it would reopen its review of the deal. The US Treasury said Friday that Grand Chip, a German company, expressly set up for the deal and is "ultimately owned by investors in China, including some which have Chinese government ownership."

It added that the deal would be financed by a unit of China IC Industry Investment Fund, a Chinese government-supported industrial investment fund designed to support the country's integrated circuit industry.

Published in Government