The 3Com Deal, Behind the Security Flap – Ming Shuliang, Xu Ke, and Chen Zhu


Based on the chorus of opposition in Washington, the proposed buyout of U.S. communications networking company 3Com seems even more unsettling to the American public than China National Offshore Oil Corp.’s attempted purchase of California-based Unocal – a deal that collapsed two years ago under pressure from the U.S. Congress. 3Com’s proposed sale to China’s Huawei Technologies and the U.S. private equity fund Bain Capital “goes right to the heart of cyber security,” declared Republican congressman Duncan Hunter during a recent CNN interview.

Congressman Thaddeus McCotter, chairman of the House Republican Policy Committee, wrote to fellow House members, “We must tell the communist Chinese that America’s security is not for sale.” And several organizations, including the virulently anti-China group China e-Lobby, wrote to Gay Hartwell Sills, staff chair for the Committee on Foreign Investment in the United States (CFIUS), a Treasury Department agency, asking her to block the deal. [Full Text]

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