Huawei Throws Towel In On 3Leaf Acquisition
Feb 19, 2011, 8:24 AM by Eric M. Zeman
Huawei today issued a statement regarding its intent to follow the recommendations of the U.S. government concerning its acquisition of 3Leaf Systems. The company said, "This was a difficult decision, however we have decided to accept the recommendation of CFIUS to withdraw our application to acquire specific assets of 3Leaf. Huawei will remain committed to long-term investment in the United States. The significant impact and attention that this transaction has caused were not what we intended. Rather, our intention was to go through all the procedures to reveal the truth about Huawei." Separately, the Chinese government had its own opinion about the deal. China wants more transparency regarding national-security reviews of Chinese investment in the U.S. A Chinese government spokesperson said, "China hopes U.S. laws treat Chinese companies, no matter whether they are listed companies, state-owned companies or private companies, fairly…and implement more transparent and predictable procedures." U.S. lawmakers have also questioned investments made or announced by Chinese telecommunications equipment provider ZTE. They fear that these companies are linked to the Chinese government in a way that could threaten national security.
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