Chinese tech giant Huawei is challenging a U.S. law that would limit its American sales of telecom equipment on security grounds as the company steps up efforts to preserve its access to global markets for next-generation communications.

Huawei Technologies Ltd.'s lawsuit, announced Thursday, asks a federal court to reject as unconstitutional a portion of this year's U.S. military appropriations act that bars the government and its contractors from using Huawei equipment.

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