(Reuters) – China's Huawei Technologies Co Ltd has dropped legal action against the US government after Washington released the telecom equipment it had seized on suspicion of export control violations, according to a report. file filed Monday.
Huawei (HWT.UL), which has been blacklisted in the United States since May, has sued the US Department of Commerce and other US government agencies for seizing equipment in Alaska in 2017 before returning in China after a laboratory test in California.
Huawei said the US government had returned the equipment in August after confirming that no export license was required and decided to drop the suit.
The company was disappointed that the US government refused to provide a full explanation of what Huawei calls "arbitrary and illegal" detention of the equipment for two years.
The fate of Huawei, the world's largest manufacturer of telecommunications equipment and a national icon in China, has become crucial in escalating the trade war between Beijing and Washington.
Huawei is still facing numerous criminal charges in the United States for allegedly violating US export sanctions, including on Iran. He is attempting to challenge his addition to the US National Defense Authorization Act as part of an ongoing lawsuit that, in his view, would have restricted his activities in the United States "unconstitutionally".
Washington said Beijing could use the Chinese company's telecommunications equipment to spy, an allegation refuted by Huawei.
The Trump administration added Huawei to the list of entities in May, preventing it from buying the necessary components and parts in the US without the approval of the US government and threatening to disrupt its operations.
Report of Sijia Jiang in Hong Kong; Other reports by Diane Bartz in Washington; Edited by Muralikumar Anantharaman
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