Huawei could have hit a brick wall in its quest for world domination.
The Chinese company has been advised by a US panel that it should drop a US company that it bought in May or face the Committee on Foreign Investment in the United States (CFIUS)making a recommendation to the US president that the deal be blocked.
However, Huawei isn’t taking the threat lying down, according to the WSJ, it’s going to risk the deal going to the president, who doesn’t necessarily have to listen to what the committee is ordering him to do.
The case has been going on for a number of months following claims that Huawei failed to declared the acquisition of 3Leaf Systems, with the firm claiming that it did not require clearance in this instance.
So far it is thought Huawei has hired fifteen 3Leaf employees, owns several former 3Leaf patents and has purchased the company’s servers out of bankruptcy
However, the $2 million deal has angered those in the US who don’t think Huawei should be allowed to get away with it.
William Plummer, vice president of government affairs for Huawei, told the WSJ it respected the process. He added that the company was willing to work with those concerned and ease security fears.
The Treasury Department, which usually oversees CFIUS issues didn’t want to comment, claiming that the filing was sensitive and couldn’t be shared.
Of course this isn’t the first time Huawei has found itself in hot water with the US government. Last year those above decided to block a deal with Sprint following security concerns about the company’s links with the Chinese military, a claim that’s been vigorously denied by Huawei.
However, ZTE is faring better than its competitor. It’s succeeded in a deal with Sprint and used this to its advantage, demanding that the US government keeps its nose out of its deals.