Chinese stealth tech acquisition foiled

Steve McCann
The Chinese tech firm Huawei has given up on its attempt to purchase American server technology company 3 Leaf. AT warned readers about this February 15 and February 16. From the latter item:

It now has been revealed that Committee on Foreign Investments in the United States (CIFUS) officials only found out about Huawei's acquisition last summer when they came across a puzzling find during a routine review of Huawei, as that company is prominent on the government's radar screen. (snip)

This was yet another part of the long term pattern of obfuscation and dishonesty by Huawei as well as their close ties to the Chinese military.

This has now become a major political issue between China and the U.S., and if not approved by Obama there is a distinct possibility of a retaliatory move by Beijing against American companies.

The mere fact that the Chinese willfully, secretly and blatantly acquired the 3Leaf with no notification, which they knew was necessary, and now appeals the CIFUS decision to the President, reveals the mindset of the Chinese that the United States is their de facto puppet and must do whatever Beijing demands. 

The Financial Times reports that the company has now given up:

Huawei, the Chinese telecom equipment maker, has aborted its challenge to the US government over a deal Washington had refused to give national security clearance.

The move is the latest twist in the increasingly dramatic conflict between Chinese companies' global expansion and some governments' suspicions that allowing them in could make countries vulnerable to hostile action from an ever more powerful China.

"This was a difficult decision, however we have decided to accept the recommendation of [the Committee on Foreign Investment ] to withdraw our application to acquire specific assets of 3Leaf," the company said Saturday morning.

The statement is a surprise about-turn from its insistence just four days earlier that it would not voluntarily unwind the $2m acquisition of patents from 3Leaf, a small US company, made last May, as proposed by Cfius, the secretive executive agency which screens foreign investments in the US for national security risks

Perhaps shining the light on this outrageous move had something to do with Huawei slinking away from their outrageous tech grab. We hope so.
The Chinese tech firm Huawei has given up on its attempt to purchase American server technology company 3 Leaf. AT warned readers about this February 15 and February 16. From the latter item:

It now has been revealed that Committee on Foreign Investments in the United States (CIFUS) officials only found out about Huawei's acquisition last summer when they came across a puzzling find during a routine review of Huawei, as that company is prominent on the government's radar screen. (snip)

This was yet another part of the long term pattern of obfuscation and dishonesty by Huawei as well as their close ties to the Chinese military.

This has now become a major political issue between China and the U.S., and if not approved by Obama there is a distinct possibility of a retaliatory move by Beijing against American companies.

The mere fact that the Chinese willfully, secretly and blatantly acquired the 3Leaf with no notification, which they knew was necessary, and now appeals the CIFUS decision to the President, reveals the mindset of the Chinese that the United States is their de facto puppet and must do whatever Beijing demands. 

The Financial Times reports that the company has now given up:

Huawei, the Chinese telecom equipment maker, has aborted its challenge to the US government over a deal Washington had refused to give national security clearance.

The move is the latest twist in the increasingly dramatic conflict between Chinese companies' global expansion and some governments' suspicions that allowing them in could make countries vulnerable to hostile action from an ever more powerful China.

"This was a difficult decision, however we have decided to accept the recommendation of [the Committee on Foreign Investment ] to withdraw our application to acquire specific assets of 3Leaf," the company said Saturday morning.

The statement is a surprise about-turn from its insistence just four days earlier that it would not voluntarily unwind the $2m acquisition of patents from 3Leaf, a small US company, made last May, as proposed by Cfius, the secretive executive agency which screens foreign investments in the US for national security risks

Perhaps shining the light on this outrageous move had something to do with Huawei slinking away from their outrageous tech grab. We hope so.