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Yesterday, a federal judge in Texas ruled in favor of the United States, concluding Congress acted within its powers by including contract prohibitions against ZTE and Huawei in the 2019 National Defense Authorization Act.

Also earlier this week, the government also charged Huwei and a couple of their subsidiaries with federal racketeering and conspiracy (RICO) charges to steal trade secrets from US companies.

The recent decision stems from a Huawei lawsuit filed in March 2019, in which they claim Section 889 of the National Defense Authorization Act was unconstitutional because it limited Huawei’s business in the US. Huawei’s main argument was the NDAA overbroad in restricting sales to Huawei and violated Huawei’s due process.

Contact experienced export compliance attorney David Hsu by phone/text if you have any questions how the current prohibitions against Huawei and ZTE will impact your business. Email at attorney.dave@yahoo.com, dh@gjatradelaw.com.