Pols See Security Risk In Chinese Co.'s 3Leaf IP Buy

Law360, New York (February 11, 2011, 4:56 PM EST) -- A bipartisan group of congressional lawmakers has come out against China-based telecom solutions provider Huawei Technologies Co. Ltd.'s $2 million acquisition of California cloud computing startup 3Leaf Systems' intellectual property, citing a serious risk to national security.

It appears that Huawei’s acquisition of only certain parts of 3Leaf was specifically designed to ensure the transaction avoided review by U.S. regulators, Sens. Jim Webb, D-Va., Jon Kyl, R-Ariz., and Richard Burr, R-N.C., said in a letter released Thursday.

Huawei purchased 3Leaf’s intellectual property and hired a number...
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