Huawei has chosen to challenge in court its classification as a threat to national security by the US regulator. But the Chinese manufacturer is also hoping for a favorable political outcome.
Called a threat to the national security of the United States, Huawei strikes back. It was reported on February 10 that the Chinese manufacturer has decided to go to court to stop this description, which it considers completely unfounded and motivated by political and economic considerations. In his sights: the Federal Communications Commission (FCC).
Huawei excluded from US public funds
It is indeed this regulatory body, equivalent to Arcep in France, that exasperates the Asian brand. Indeed, the Federal Communications Commission has designated Huawei as a threat, which implies legal and commercial consequences for its activities across the Atlantic. The group can no longer access certain markets and do business as freely as before.
Huawei’s sidelining was formalized in June 2020. As a result, the group is no longer eligible for funding from a federal fund managed by the FCC, because it can no longer be used to purchase equipment or Chinese business services. But the friction between the FCC and Huawei around this fund is older, with a first complaint announced in December 2019.
Huawei argues that there is no evidence to support the FCC’s conclusion. Clearly, believes the Chinese company, it has still not been shown how its activity actually poses a risk to US national security. The group further adds that it believes that the FCC has exceeded its prerogatives, and that it is therefore an abuse of power in violation of US law.
With the fund, a subsidy is planned to help operators provide higher throughput to populations living in rural areas. This aid reaches 9 billion dollars – this is what was announced at the end of 2019. This is a significant boost for operators to buy equipment. Huawei of course expected to place itself to sell its own. Until the FCC shutdown.
If the manufacturer has decided to go through the judicial box in the hope of putting an end to this qualifier, it is however not certain that its outcome will be favorable. So he takes care to spare the political side, by sending signals to the new Biden administration. As Frandroid notes, the boss of Huawei has declared in a Chinese publication that he is ready to resume speaking with the White House.
But, for a discussion, it is still necessary to be two. However, precisely, the Democrats who took power on January 20 do not seem quite prepared to deviate from the line drawn by the Republicans during the previous term of office. For geopolitical reasons that go far beyond the single case of Huawei, it seems very unlikely that the tone will soften in the years to come.
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