The United States accounts for 20 to 25 per cent of the global market for computer and telecom technology.
"The U.S. Congress has failed to produce any evidence to support its restrictions on Huawei products. We are compelled to take this legal action as a proper and last resort", Guo Ping, Huawei Rotating Chairman said.
It says the law causes the company "concrete and particularized injury, and imminent future injury" and subjects it to a "burden that is severe, permanent and inescapable" that amounts to a corporate "death penalty".
Huawei's ties to the Chinese government have come under scrutiny, and the United States has called the Chinese phone giant "duplicitous and deceitful".
Guo even countered that the US government "has hacked our servers and stolen our emails and source code", without providing details.
While Huawei had very little share of the U.S. market before the bill, it is the world's biggest telecoms gear-maker and is seeking to be at the forefront of a global rollout of fifth-generation (5G) mobile networks and services. Prosecutors allege that Skycom is a hidden subsidiary of Huawei, while Huawei maintains they are two independent companies.
Huawei Technologies Co. sued the USA government for barring its equipment from certain networks, delivering a legal riposte to American accusations it aids China in espionage.
Huawei just upped the ante in its fight with the U.S. over its telecommunication devices.
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Last month Huawei's founder Ren Zhengfei insisted his company has never spied for the government, and he would rather shut down the company than agree to any such request for information.
The charm offensive went into another gear Wednesday as Huawei welcomed news organisations on a tightly guarded tour of its massive production lines and research and development facilities in southern Guangdong province. "It is an abuse of the USA lawmaking process". But Trump undercut that position by saying he would consider intervening in the case if it would help forge a trade deal with Beijing.
Huawei's legal action, first reported by the New York Times on Monday, comes after news that Meng was suing Canada's government for procedural wrongs in her arrest. The day after Canada approved her extradition hearing, Beijing publicly accused the two Canadians of conspiring together to steal state secrets.
Meng is suing the Canadian government, border agency and the national police force for detaining and interrogating her before informing her she was under arrest.
In the press conference, Guo defended the company's record on national security, reiterating that Huawei was a world leader in telecommunications, particularly in 5G. He said China's government "needs to protect the health and safety of its own people".
In it, the manufacturer's U.S. wing, based in Plano, Texas, names various government department heads, from Education Secretary Betsy DeVos to Veteran Affairs Secretary Robert Wilkie, as well as the United States itself, as defendants. Peck said abuse of process motions will likely be brought.
In its lawsuit, filed in U.S. District Court in the Eastern District of Texas, Huawei argues that the section of the law is illegal because it could sharply limit the company's ability to do business in the United States despite no proof of wrongdoing.
Huawei's equipment is seen as considerably more advanced than that of competitors such as Sweden's Ericsson or Finland's Nokia.