Shenzhen (China) (AFP)

Huawei announced Thursday a second lawsuit against the US administration, which excluded the Chinese telecom giant from certain subsidies in the name of national security.

In full commercial, technological and diplomatic confrontation between Beijing and Washington, Huawei denounced an "illegal" decision by the Trump administration, which sees the world leader in 5G equipment as a Trojan horse of the Chinese regime.

"Huawei is a Chinese company, it's the only excuse" for Washington to sue the group, the chief of legal services of telecom giant Song Liuping told the press.

At a press conference at the group's headquarters in Shenzhen, southern China, Song announced the filing of a complaint in the United States against his sidelining a federal fund intended to develop telecommunications infrastructure in rural areas.

Huawei, along with his ZTE compatriot, both suspected by Washington of potential spying for Beijing, were banned last month from an $ 8.5 billion fund run by the Federal Communications Commission (FCC).

Citing "a threat to national security," the Federal Communications Commission banned US telecom operators from using its Universal Service Fund (USF) to finance equipment from both Chinese companies.

It also proposed "to require companies receiving funds from USF (...) to withdraw and replace equipment and services" that have already been provided by Huawei and ZTE.

FCC President Ajit Pai justified his decision by saying that Huawei and ZTE "have close ties to the communist government and the Chinese military apparatus."

- Blacklist -

Huawei, world number two mobile phone, is at the heart of the technological battle between the two giants of the Pacific. Notably because the group, founded by a former Chinese army engineer, Ren Zhengfei, is considered indispensable for the supply of 5G equipment, the fifth generation of mobile internet.

Mr. Song said the FCC's decision did not establish that the Chinese company would pose a threat to the security of the United States.

"Banishing a company like Huawei, just because we started in China, does not solve cybersecurity issues," he said.

Huawei has already filed a lawsuit last March in the United States against the finance law of the US Department of Defense, which prohibits the government to buy equipment or services provided by the Chinese giant.

In May, the Commerce Department also placed Huawei and its affiliates on a blacklist of companies banned from trading with US companies.

A very hard blow for Huawei, which depends on the US technology for its smartphones, including Google's Android operating system.

But also hard for American companies for whom Huawei is a big customer, or for operators who rely on its equipment to install the 5G.

As a result, the Trump administration said last month that it had begun giving a specific go-ahead to US companies wanting to supply components to Huawei, but only to those exporting products that are not sensitive in terms of national security.

This new 90-day respite is the third since May. It is justified by the Commerce Department in that it must continue to serve the most remote rural areas of the United States that may be deprived of mobile technology.

ZTE went bankrupt last year after US companies were barred from selling vital components to it because of its ties with Iran and North Korea. Donald Trump then reversed his decision and allowed ZTE to resume its imports but under strict conditions.

© 2019 AFP