A US government committee has started a review into Huawei’s acquisition of US server company 3Leaf Systems, according to media reports.
The Wall Street Journal reported yesterday that the Committee on Foreign Investment, part of the US Treasury, is…
A US government committee has started a review into Huawei’s acquisition of US server company 3Leaf Systems, according to media reports.
The Wall Street Journal reported yesterday that the Committee on Foreign Investment, part of the US Treasury, is reviewing the US$2m deal, which was completed in May.
Huawei has allegedly met with political obstacles to expansion in the US.
It won an injunction earlier this week in a US District Court, which stopped Motorola providing confidential information to the European vendor Nokia Siemens Networks (NSN).
This could delay NSN’s acquisition of Motorola’s network business. Huawei reportedly made a higher bid, but failed to win the contract.
In 2009, it bid for a network infrastructure contract with Sprint Nextel, but Sprint gave the contract to Alcatel-Lucent, Ericsson and Samsung. This was despite Huawei and ZTE, another Chinese vendor, reportedly offering lower bids.
It followed a group of US politicians – two Republican senators, Jon Kyl and Susan Collins; the independent senator Joseph Lieberman; and the Republican representative Sue Myrick – sending a letter to the chairman of the FCC with their concerns regarding Huawei’s alleged links to the US military.
In 2008, it had to drop a bid for computer-equipment maker 3Com due to concerns over security.
The US Treasury declined to comment. Huawei did not reply to questions before the press deadline.