Tuesday 10 September 2019 9:01 am

Huawei drops lawsuit against US over seized equipment

Huawei has dropped a lawsuit against US authorities over telecoms equipment that was seized on suspicion of export control violations.

The Chinese tech firm launched legal action against the commerce department and other government agencies after they seized equipment in 2017 following a lab test in California.

Read more: US charges Chinese professor with fraud in latest clash with Huawei

The US government returned the equipment in August after confirming no export licence was required, and Huawei has now dropped the suit.

The beleaguered tech giant, which has been placed on a US trade blacklist, said it was disappointed the US had not provided a full explanation of the seizure, which it described as “arbitrary and unlawful”.

The decision to drop the lawsuit marks the end of one strand of a complicated legal battle between US authorities and Huawei.

The Chinese company is facing criminal charges over accusations it violated sanctions against Iran, and its finance boss Meng Wanzhou is being held in Canada pending extradition proceedings. In addition, Huawei faces a number of lawsuits relating to alleged fraud and intellectual property theft.

In return, Huawei has sued the US over an “unconstitutional” ban on using its equipment from government use.

Read more: Huawei accuses US of threatening its staff in bid to hire informants

President Donald Trump has added the company to a trade blacklist and urged the US’s allies to follow suit amid accusations equipment could be used for spying by Beijing.

Huawei has always denied allegations of espionage and has accused the US of launching a politically-motivated attack.

Main image credit: Getty