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Huawei resisting calls to divest 3Leaf

Huawei resisting calls to divest 3Leaf

Write: Pallav [2011-05-20]

HUAWEI Technologies is resisting calls to divest recently acquired U.S. server technology firm 3Leaf, opting instead to wait for a decision from the White House before taking action.

The Shenzhen-based telecommunications equipment maker bought server technology firm 3Leaf for US$2 million last May. The U.S. Government has been concerned about Huawei for years because of uncertainty over its relationship with the Chinese Government.

After completing its review of the Huawei/3Leaf deal, the Committee on Foreign Investment in the United States (CFIUS) suggested that Huawei should voluntarily divest the assets, according to Huawei.

The company declined the suggestion and said it would wait out the next step in the process, which is a 15-day presidential review.

We d like to see a proper conclusion to this process, said Bill Plummer, Huawei s U.S. vice president for external affairs.

Plummer said Huawei would be happy to give the U.S. Government more information about Huawei to help with the review.

We would welcome a transparent national security agreement that would allow the U.S. Government full visibility into all aspects of our operations, employees and facilities in the United States, Plummer said.

Huawei s alleged links to Chinese security services has torpedoed U.S. deals in the past.

The world s No. 3 seller of telecom network equipment gave up a bid for 3Com in 2008 due to security concerns. In 2010, a group of U.S. Republican lawmakers raised national security concerns about Huawei s bid to supply mobile telecommunications equipment to Sprint Nextel Corp.(SD-Agencies)