Chinese telecoms company Huawei has rejected calls from a US panel which ordered it to divest a small American technology company acquired for US$2m. It has appealed for President Obama's decision on the issue.
Huawei is suspected of having close ties with the People's Liberation Army, and its attempts to acquire American companies have been blocked on the grounds that it could compromise the security of American networks.
President Obama now faces the difficult decision of upholding the Committee on Foreign Investment's ruling, which would placate an increasingly anti-China Congress but contradict his stated goal of improving ties with China.
What now for Huawei? [Financial Times blog, 16 Feb 2011]
Huawei, advised to sell US assets, waits on Obama [BusinessWeek, 16 Feb 2011]