Huawei to challenge FCC decision on government subsidy program

Huawei Mate Book X Pro

Huawei is expected to file suit next week in the Fifth Circuit Court of Appeals in New Orleans to challenge the November 22 decision by the FCC barring rural telecom carriers in the U.S. from using federal subsidies to purchase Huawei gear, the Journal reported, citing anonymous sources. "Instead, the FCC simply assumes, based on a mistaken view of Chinese law, that Huawei might come under Chinese government control".

However a number of smaller providers use kit from Huawei and ZTE because it is relatively low-cost.

The Chinese telecom giant Huawei reportedly is planning to take legal action against the decision by a U.S. telecom regulator to shut it out of the American market.

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Huawei, which has given Apple and Samsung a run for their money - especially in China, is now crafting a lawsuit that will challenge the FCC's decision, The Wall Street Journal reported, citing people familiar with the matter.

The Universal Service Fund is used to subsidize telecommunications services and equipment, primarily in rural areas of the United States, a market where Huawei equipment is present despite increasing American pressure on the company.

President Trump in May blacklisted Huawei and issued an executive order barring USA companies from buying telecommunications products from the tech giant, citing national security risks, though the administration has loosened its restraints on the company in recent weeks. The ban on dealing with USA suppliers has limited Huawei's access to key technologies such as Google's Android's operating system and has been a blow to its ambition of becoming the world's leading smartphone manufacturer. The US government has eased its stance slightly, promising to issue licences to firms who want to sell non-sensitive goods. The most high profile recipient of a licence to date has been Microsoft, which supplies the Windows 10 operating system for Huawei laptops.

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