Network equipment vendor Huawei has reversed its stance and has accepted the recommendation of a panel of U.S. give up voluntarily by a business acquisition that had drawn national security concerns.
Huawei said in a statement Saturday that the company has decided to follow the recommendation of the Committee on foreign investments in the United States (CFIUS) by stopping to acquire specific goods from a U.S. launch.
In may, Huawei had paid $ 2 million for the acquisition of intellectual property by 3Leaf systems, which specializes in creating server to perform together as the most powerful mainframe computer. The deal, however, has come under scrutiny by the Government of the United States, because it was cancelled without approval by CFIUS. Government officials then asked Huawei to place the deal in the review of CFIUS.
Huawei already acquired intellectual property and staff from 3Leaf systems, so that it is not clear how the deal might be reversed.
Earlier this week, said the Chinese company that decreased the CFIUS recommendation to transfer voluntarily by acquisition. Moving the Huawei probably would have forced President Barack Obama to make a decision and resolve the issue.
"The significant impact and attention that caused the transaction were not what we intended," Huawei said in his statement. "Rather, our intention was to go through all the procedures of revealing the truth about Huawei".
Huawei has attracted accusations by u.s. officials that the company is tied to the Chinese military. The alleged links has made it difficult for the company to complete certain U.S. business in the past. Huawei, however, denies any such links with the Chinese military, noting that the company is wholly employee-owned company.
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