Corporate Counsel: US Businesses with Ties to Huawei Need to Prepare for Disruption

March 12, 2019

Federal prosecutors have accused Huawei Technologies Co. of deceiving US banks into bypassing US sanctions on Iran, stealing trade secrets, money laundering, and fraud. As a result, trade lawyers are warning US companies with Huawei business relationships to be prepared for government interference.

Additionally, Huawei argues in a federal lawsuit that a US ban on government agencies buying or using Huawei’s services is unconstitutional. Ronald Cheng, a partner at O’Melveny, believes that the Trump administration could feel pressured to take executive action if the court strikes down the law. “What seems to be implicit [in Huawei’s suit] is if there’s going to be a way to do it that would be by executive action,” said Cheng.