Huawei has decided to drop a lawsuit it had against the US government for seizing some of its equipment two years ago following the return of the items.
Back in July 2017, the US commerce department, together with a handful of other government agencies, raided Huawei’s test lab in California and seized some of the equipment found there, suspecting that the company had violated export controls.
A month later, in August, the gear was returned, after the government confirmed that Huawei never needed an export license for the gear in question.
Huawei has now decided to drop the suit, but did add that it was disappointed because the US government never explained fully why it had seized its equipment. It called the confiscation “arbitrary and unlawful”.
China and the United States are in the middle of a trade war, and the Chinese telecoms giant, Huawei, has found itself in the crossfire (opens in new tab). The company has since been blacklisted in the US, which bans all US companies from doing business with it (opens in new tab). The ban has since partially been lifted (opens in new tab), allowing US companies to sell, but not buy from, Huawei.
Huawei is being accused that its 5G infrastructure gear could be used by the Chinese government for espionage. The company denies the accusations, saying it’s as secure, if not more, as its competition.