A US foreign investment panel has decided Huawei Technologies should divest itself of a small company the Chinese telecom-equipment maker bought in May. Huawei said it was told by the Committee on Foreign Investment in the United States that it must divest the company or the committee will make a recommendation to the US president that the deal be unraveled. Huawei has decided to take its chances with the president, who doesn't have to act on the recommendation, Bill Plummer, vice president for government affairs for Huawei USA, told the Wall Street Journal. He said the company was willing to negotiate a broad national security agreement that could alleviate concerns from some officials. "To withdraw and divest would have tarnished our brand and reputation," he said. The Treasury Department, which typically takes the lead on CFIUS matters, declined to comment, saying information filed with CFIUS by law can't be disclosed. The options were laid out after CFIUS concluded its review of Huawei's purchase of US start-up 3Leaf Systems, which created technology allowing groups of computers to work together like a more powerful machine. Under the deal, Huawei hired 15 3Leaf employees, bought several former 3Leaf patents and purchased the start-up's servers out of bankruptcy.
