CONTEXT:

• World’s largest telecom equipment maker Huawei filed a motion in a US court to declare National Defense Authorization Act (NDAA) as “unconstitutional”.
• The U.S. court had agreed on a schedule to hold hearings in September on motions by opposing sides.

BACKGROUND:

• The NDAA bill, passed by the U.S. Congress in 2018, places a broad ban on federal agencies and their contractors from using Huawei equipment on national security grounds, citing the company’s ties with the Chinese government.
• In its petition, Huawei said that NDAA illegally targets without opportunity for rebuttal or escape. It provides no opportunity to present evidence as defence.
• The company repeatedly denied it is controlled by the Chinese government, military or intelligence services.
• In early May 2019, the U.S. Commerce Department put Huawei on a trade blacklist that bans companies from doing business with the Chinese firm, a move which immediately disrupted the global tech sector.
• The ban affected the company’s more than 1,200 suppliers and threatened to affect its 3 billion customers in 170 countries.
• Huawei, which has been given a 90-day reprieve from the ban, has denied its products pose a security threat and protested Washington’s attempts to limit its business.