The transition to the Biden administration may have sparked some hope in Huawei but, if recent news is any indication, it might still be fighting a losing battle. Biden’s pick to lead the Commerce Department already indicated her stance on keeping the status quo. Huawei is now picking up another fight in a different arena, this time challenging once more the constitutionality of the FCC’s recent decision to label Huawei as a threat to the national security of the US.
The bans and sanctions against Huawei come from multiple fronts but their root has always been a singular one. Huawei, along with ZTE, has been accused of being a tool for the Chinese government’s spying activities, mostly through backdoors in its latest networking equipment and devices. This allegation had multiple effects on Huawei’s businesses, from being banned from use by US carriers to having no access to materials and technologies to build its phones.
Huawei already challenged the FCC’s designation in court, revolving primarily around the agency’s ruling that carriers cannot use government subsidies towards purchasing Huawei equipment. Huawei argued that it dealt a critical blow on rural and smaller carriers that depended heavily on its more affordable hardware but the FCC countered that it will be asking Congress for additional money to help these networks move away from Huawei’s products.
The company has now filed a different lawsuit, this time directly arguing that the FCC’s label was unconstitutional and even harmful to the US industry. It further argued that not only did the FCC lack any “substantial evidence”, it wasn’t given a chance to defend itself either.
Huawei might be hoping that the new administration is more willing to listen and negotiate, but things might not exactly go in Huawei’s favor just yet. The Biden administration might not be too keen on stirring things up with regards to Huawei’s situation even while it tries to repair bridges with China that Trump and his team burned.