Chinese telecoms giant Huawei is preparing a legal counterpunch against new moves by American regulators to bar the company from accessing $8.5 billion in US federal funds for services and equipment, a report said Friday. The Federal Communications Commission (FCC) last week branded Huawei and its Chinese rival ZTE as threats to US national security and blocked them from the fund. It also proposed that other service providers be required to cancel or replace existing services and equipment from the companies.

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