Huawei takes US to court, shares surge
The world’s largest maker of telecommunications equipment sued the U.S. government stating a law limiting its business in the Unites States was unconstitutional. The Chinese giant has filed a complaint in a federal court in Texas challenging Section 889 of the National Defense Authorization Act.
Huawei stocks jumped more than 5% after the company has filed a lawsuit against the U.S. government
Stocks impacted: Huawei Technologies Co. Ltd. (SHE)
The act that was signed into law by Trump in summer, bars federal agencies from procuring its equipment and services. The decision by Huawei marks the ongoing confrontation between the US and China and suggests this local conflict could be challenging to get resolved any time soon, especially considering that Huawei’s activities were under scrutiny by U.S. authorities long before Trump initiated the trade war with Beijing. So despite the current investor optimism – Huawei shares surged by nearly 6% - the stocks may face hurdles going forward as the latest actions could provoke a hostile reaction from Washington.
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