Feb 15, Kathmandu- South Africa has filed a lawsuit against Chinese Huawei Technology. Huawei's local unit has broken the rules for hiring locals from South Africa. The court has therefore been asked to impose a fine and order the company to modify its practices.

The department said Huawei was allowed to employ 60 percent South Africans and 40 percent foreigners in accordance with the provisions of the immigration regulations. However, contrary to the agreement, Huawei has significantly increased the number of foreign workers. This is the first time the South African government has filed a lawsuit against Chinese tech giant Huawei.

Huawei is facing US sanctions over allegations that its equipment could be used by the Chinese government for espionage. Huawei and Beijing have repeatedly denied the allegations. Huawei estimates that US sanctions will reduce revenue by almost 20 percent in 2021.

South Africa's Department of Labor on Friday filed a lawsuit against the company alleging that 90 percent of its employees were recruited by foreigners in violation of employment equity rules set by the company.

The department has filed a lawsuit in court seeking a 1.5 million jar fine for the alleged violation and a 2 percent penalty for the local firm's annual turnover in 2020.

Fikiswa Mankanka-Bede, an advocate for the Department of Labor, said He was requesting an honorable court to order that an employment equity scheme be implemented to resolve the status.

In a brief statement, Huawei South Africa said it was committed to continuing its involvement with the department in the equity scheme. It is also stated that it is committed to abiding by the local laws and regulations.

However, the Department of Labor went to court claiming that it had taken action against a small Chinese firm for working in its factory in Johannesburg and for human trafficking.