Huawei appeals against subsidy ban in US, calls action political

China’s Huawei has mounted a legal challenge against the US Federal Communications Commission (FCC) after the body designated the technology giant as a security threat and moved to bar it from a government subsidy program.

The FCC last month voted unanimously to designate Huawei Technologies and peer ZTE Corp as national security risks, barring their US rural carrier customers from tapping an $8.5 billion government fund to purchase Huawei or ZTE telecommunications equipment.

Huawei said on Thursday it filed a petition with the Fifth Circuit Court in New Orleans challenging the FCC decision.

The FCC argued the companies’ ties to China’s government and military apparatus, and Chinese laws requiring that such companies assist the Chinese government with intelligence activities, pose a US national security risk.