Huawei Chinese invites U.S. probe

February 25, 2011, Last updated at 04: 45 GMT Huawei is one of the biggest indicators of Huawei network switching equipment, a Chinese telecom equipment maker, said it would welcome a formal investigation by the US authorities after a takeover bid was halted on security concerns.

Huawei made the call in an open letter on its website.

Last week, a U.S. Security Panel rejected the purchase Huawei 3Leaf systems American computer company.

Huawei was founded by former army officer-Chinese Ren Zhengfei, and there are concerns that still has military ties.

«Misperceptions»

The company has played down any ties with the military or the Government of China.

In his letter, Huawei has said that "over the past 10 years, as we invest in the United States, we met a number of misperceptions."

It says that these allegations unfounded and unsubstantiated of close ties with the Chinese military, disputes over intellectual property rights, accusations of financial support from the Chinese Government and threats to national security of the United States.

"We sincerely hope that the Government of the United States of America will make a formal inquiry on any problems that it can have on Huawei," the company said in the letter.

Deal blocked

Huawei, which also has had previous offers U.S. blocked on security issues, purchased in May 2010 3Leaf for $ 2 million (£ 1.2 m).

However, an examination by the Committee of foreign investment in the United States said that the deal should move forward.

Huawei Chinese to reverse the controversial Deal for 3Leaf

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.