2011-02-16 (China Military News cited from UPI) -- China's tech giant Huawei has said it won't cave in to U.S. congressional pressure to go back on a $2 million deal because of security concerns.
The Chinese firm was told by the Committee on Foreign Investment in the United States this week that if it didn't scrap its acquisition of U.S. computer technology, the committee would push U.S. President Barack Obama to undo the deal.
The committee, said Huawei in a statement, "asked us to withdraw from the regulatory review and sell patents but, in light of the possible further damage to the Huawei brand and reputation, we have been compelled to decline."
The acquisition, concluded in May, concerns the firm 3Leaf Systems, which recently created technology allowing groups of computers to work together like a more-powerful machine.
Huawei Vice President for Government Affairs Bill Plummer said the company was instead willing to negotiate a broad national-security agreement that could alleviate concerns from some government officials.
The company's decision not to heed the recommendations of the committee and take its chances with the U.S. president was described by the Financial Times as a "highly unusual move."
What's more, the move puts Obama in a difficult situation following last month's visit by Chinese President Hu Jintao to Washington. U.S. officials, also, have been aggressively lobbying Beijing to give U.S. technology firms bigger access to the Chinese market.
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