Monday, February 21, 2011

Facing Govt Opposition, Huawei Drops Bid for 3Leaf Systems

Huawei reportedly has abandoned its bid to acquire 3Leaf Systems, a former U.S.-based supplier of enterprise data center technology. Last week, the Department of Commerce's Committee on Foreign Investment in the United States ruled against the acquisition on national security grounds. Huawei had originally bid to acquire the intellectual property of the bankrupt 3Leaf Systems last May, but objections were later raised and the company was blocked from transferring the intellectual property.

  • In August 2010, a group of eight U.S. senators published a letter to Treasury Secretary Timothy Geithner and Director of National Intelligence General James Clapper to raise their concern Huawei Technologies as a potential supplier to Sprint Nextel. Specifically, the senators claim that Huawei maintains close ties with China's military and poses a national security risk to the United States.