Huawei asks court to throw out US telecom funds ban

Chinese tech giant Huawei is asking a US federal court to throw out a rule that bars rural phone carriers from using government money to purchase its equipment on security grounds.

The lawsuit announced Thursday is Huawei Technologies Ltd.’s second legal challenge this year to Trump administration efforts to reduce its already minimal US market presence. The Associated Press (AP) reported.

The company is scrambling to preserve its global sales of smartphones and network gear following sanctions announced in May that limit access to US components and technology.

Huawei, which says it is employee-owned and has no government ties, denies US accusations it is a security risk and might facilitate Chinese spying.