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Huawei drops US lawsuit after seized equipment returned

Huawei drops US lawsuit after seized equipment returned

Huawei called the two-year seizure “arbitrary and unlawful”

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Huawei has dropped a lawsuit against the US government after it released the Chinese vendor's telecommunications equipment that was seized on suspicion of violating export controls, according to a court filing on 9 September.

Huawei, which has been placed on a US trade blacklist since May, had sued the Commerce Department and other US government agencies for seizing its equipment in Alaska in 2017 en route back to China after a lab test in California.

Huawei said the US government returned the equipment in August after confirming no export licence was required and it decided to drop the suit.

It said the company was disappointed the US. government refused to provide a full explanation of what Huawei calls “arbitrary and unlawful” detention of the equipment for two years.

The fate of Huawei, the world’s largest telecommunications equipment maker and a national icon in China, has become crucial in an escalating trade war between Beijing and Washington.

Huawei still faces multiple criminal charges in the United States for allegedly breaking US export sanctions to countries including Iran. It is trying to challenge its addition to the US National Defence Authorisation Act in an ongoing lawsuit, which it says had restricted its business in the United States “unconstitutionally”.

Washington says the Chinese company’s telecoms gear could be used by Beijing to spy, an allegation Huawei has denied.

The Trump administration added Huawei to the so-called entity list in May, barring it from buying needed U.S. parts and components without U.S. government approval and threatening to disrupt its operations.

Reporting by Sijia Jiang in Hong Kong; Additional Reporting by Diane Bartz in Washington; Editing by Muralikumar Anantharaman



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