Embattled Chinese tech giant Huawei dropped a legal case against the United States government Monday after the U.S. freed telecommunications equipment it detained in 2017 amid suspicions that Huawei had flouted export regulations.

The Chinese company filed the lawsuit in June after the Department of Commerce confiscated the equipment, which included computer servers, Ethernet switches and other telecom gear, as it passed through Alaska on its way to China. Huawei, which described the seizure as “prolonged and unexplained” and “unjustified” in a Tuesday press release, recovered the equipment in August after Washington confirmed that an export license was unnecessary.

Huawei remains on the U.S. government’s so-called Entity List, a status that curtails the company’s access to American suppliers. The dispute is part of an ongoing trade war between China and the U.S. that has roiled economies on both sides of the Pacific.

Washington alleges that Beijing could potentially use Huawei’s telecom equipment for espionage, a claim Huawei denies.

Contact reporter Matthew Walsh (matthewwalsh@caixin.com)

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