Huawei says US blacklist will harm billions of customers

Song Liuping, chief legal officer of Chinese tech giant Huawei, speaks during a press conference at the Huawei facilities in Shenzhen
AFP/Getty Images
Megan White29 May 2019

Putting Huawei on a trade blacklist “sets a dangerous precedent” and will harm billions of customers, according to the company’s top legal officer.

Song Liuping said the decision “threatens to harm our customers in over 170 countries, including more than three billion customers who use Huawei products and services around the world”.

He also said the trade ban would also "directly harm" American companies and affect jobs.

The Chinese tech giant filed a motion in US court on Wednesday challenging the constitutionality of a law that limits its sales of telecom equipment, the latest action in an ongoing clash with the government.

A man uses his smartphone outside of a shop selling Huawei products at a shopping mall in Beijing
AP

Mr Song said Huawei had filed a motion for summary judgment asking the court to rule on whether it is constitutional for the US to implement a military spending provision that bars the government and its contractors from using Huawei equipment.

He said the "state-sanctioned campaign" against the company will not improve cybersecurity.

Mr Song added: "Politicians in the U.S. are using the strength of an entire nation to come after a private company. This is not normal."

The US and China are embroiled in a trade dispute and tariff war that began last July following complaints from President Donald Trump that China steals from or pressures foreign companies to hand over technology while unfairly subsidizing Chinese businesses.

The most recent round of negotiations earlier this month ended with no agreement, after Trump more than doubled duties on $200 billion in Chinese imports.

China responded by raising tariffs of 5 per cent to 25 per cent on $60 billion worth of American goods.

Soon afterward, the US Commerce Department placed Huawei on its "Entity List," effectively barring American firms from selling its technology without government approval.

Huawei relies heavily on US components, including computer chips, and about one-third of its suppliers are American.

The move has already affected the company's US partnerships.

Google said it would continue to support existing Huawei smartphones, but future devices won't carry its flagship apps and services, including maps, Gmail and search - a change that will likely make Huawei phones less appealing.

Song said the U.S. has not provided any evidence to show that Huawei is a security threat.

He said: "There is no gun, no smoke, only speculation.

"Today it's telecoms and Huawei tomorrow it could be your industry, your company, your consumers."

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