Huawei Technologies, the world’s largest telecommunications equipment supplier, plans to announce a lawsuit against the United States government on Thursday on grounds related to a defence bill, a source with knowledge of the matter told Reuters. Shenzhen-based Huawei is preparing to sue the US government in a court in Texas by challenging an addition to the country’s National Defence Authorization Act (NDAA) signed last year, according to the source. The new NDAA act, which Beijing had condemned as targeting China, controlled US government contracts with Chinese companies, including Huawei, and strengthened the role of the panel that reviews foreign investment proposals. Trump’s Huawei ban will hit rural US carriers the hardest as replacing equipment will cost ‘millions’ The New York Times first reported Huawei’s planned legal move on Monday, citing two people familiar with the matter. Huawei declined to comment. It had invited Reuters and other international media to a press conference at its headquarters in the Chinese coastal city of Shenzhen on Thursday. Such a move would be the latest in a series of responses from Huawei amid Washington’s efforts to persuade its allies to ban the use of the Chinese company’s products from telecoms networks over alleged espionage risks. Huawei has repeatedly denied the claims. On Sunday, lawyers for Huawei chief financial officer Sabrina Meng Wanzhou sued the Canadian government, its border agency and federal police, alleging their client was detained, searched and interrogated for three hours in violation of her constitutional rights. US-China trade tensions fuel misconceptions about role of Chinese tech firms, says Alibaba Cloud executive That comes after Canada on Friday approved a hearing on a US extradition request for Meng on charges related to breaking Iran sanctions. The New York Times cited a source as saying Huawei’s suit is likely to argue that the NDAA provision is a “bill of attainder”, or a legislative act that singles out a person or group for punishment without trial. Canada arrested Meng in Vancouver on December 1 at the request of the US government, which has brought sweeping charges against her and Huawei that portray the company as a threat to national security. The case has strained Canada’s relations with China.