Huawei lawsuit dropped against US government

Huawei lawsuit dropped against US government after equipment detained for two years was returned

Huawei Technologies USA has dropped a lawsuit it filed back in June against the US Commerce Department and several other US government agencies. Huawei has decided to drop the case after the US government returned the equipment, which Huawei views as a tacit admission that the seizure itself was unlawful and arbitrary.

The lawsuit was originally filed in response to the seizure of telecommunications equipment in September 2017.

The equipment, which included computer servers, Ethernet switches, and other telecommunications gear made by Huawei in China, should have been shipped back to China after commercial testing and certification at a laboratory in California in September 2017. The US Commerce Department, citing unidentified export violation concerns, seized the equipment while it was in transit.

For the following two years, the US government failed to make a decision on whether an export license was required for the equipment to be shipped back to China, and continued to hold on to it.

In August, the US government informed Huawei in writing that it had determined that no export license was required for shipment to China, and Huawei had complied with export regulations when attempting to ship the equipment back.

The US government then shipped the equipment back at its own expense.

Huawei lawsuit dropped against US government

Despite the dropping of the Huawei lawsuit, Dr. Song Liuping, chief legal officer of Huawei, said: “Arbitrary and unlawful government actions like this – detaining property without cause or explanation – should serve as a cautionary tale for all companies doing normal business in the United States, and should be subject to legal constraints.”

Dr. Song noted that Huawei will continue to vigorously defend its legitimate rights and interests with legal means.