A US federal judge dismissed a Huawei challenge to a ban on government agencies using its gear, ruling a lawsuit filed by the vendor had no legal grounds, Reuters reported.
The district court judge determined Congress had the power to include restrictions on Chinese companies in the National Defense Authorisation Act (NDAA).
A clause preventing government agencies and contractors from using equipment supplied by Chinese vendors was part of a defence spending bill which was passed into law in August 2018.
In a statement, Huawei expressed disappointment with the ruling, noting “while we understand the paramount significance of national security, the approach taken by the US government in the NDAA provides a false sense of protection while undermining Huawei’s constitutional rights. We will continue to consider further legal options”.
Huawei filed the lawsuit in March 2019 in the state of Texas, home to its US headquarters, seeking a permanent injunction against the restriction. It claimed the ban violated its due process and the separation-of-powers principles enshrined in the US constitution.
The court decision comes as the US government attempts to escalate trade restrictions on the company, most recently proposed changing regulations to give it the authority to block global chip sales to the vendor.
Last week the Department of Justice accused Huawei of racketeering and conspiring to steal trade secrets.Subscribe to our daily newsletter Back