Huawei is planning to take legal action against the new moves which have been made by the regulators in America for barring the company from accessing an amount of $8.5 billion in the federal funds of US for the equipment and services as per a report which came out on Friday.

FCC which is the commission of Federal Communication had in the previous week branded the Chinese telecom giant Huawei along with its rival ZTE as a threat to the security of United States and had blocked them away from these funds.

It has also given the proposal that the other providers must cancel or find a replacement of the existing equipment and services from these companies.

Huawei is planning to file this lawsuit next week in the United States as per reports from media houses.

The spokesperson from Huawei has not commented on this issue however there has been an invitation which has been sent out to the media houses for next week on Thursday for an announcement which is not specified yet.

AjitPai who is the chairman of FCC has said in his statement giving an explanation that this move is meant to prevent the threat from ZTE and Huawei. Both these companies according to Pai have close associations with the communist government and the military of China.

Huawei has said that the decision of FCC is based on lesser facts and more assumptions which have been taken mistakenly. It further said that blocking this access is going to hurt consumers in America significantly.

Donald Trump had in May moved to block the companies in America from engaging in business with the Chinese tech giant.