China’s Huawei has challenged the U.S. Federal Communications Commission (FCC) after the body called the technology titan as a security threat and tried to ban it from a government grant schemes.
The FCC last month voted unanimously to name Huawei Technologies and peer ZTE as national security risks, banning their U.S. rural carrier customers from tapping an $8.5 billion government money to buy Huawei or ZTE telecommunications gear.
Huawei said Thursday it filed a petition with the Fifth Circuit Court in New Orleans against the FCC decision.
The FCC argued the businesses’ ties to China’s government and military equipment, and Chinese laws requiring that such corporations help the Chinese authorities with intelligence activities, pose a U.S. national security threat.
It further voted to propose requiring carriers to remove and change gear from Huawei and ZTE in existing networks.
The FCC didn’t instantly respond to a request for comment.
U.S. President Trump in May placed Huawei on the nation’s so-called trade blacklist, citing national safety concerns, which barred firms from supplying Huawei with U.S. parts without special permits.
The U.S. is now weighing expanding its power to cease more international shipments of products with U.S. technology to Huawei.
Karl Song, VP of Huawei’s corporate communications division, in a statement stated the FCC decision threatened improving connectivity in rural America and would value lots of millions of dollars and even force several small carriers to go bankrupt.