A major Chinese telecoms equipment producer says it is calling off its purchase of
a US computer company after a security panel refused to approve the deal.
Huawei Technologies Ltd. initially said it hoped to win White House approval for
its purchase of 3Leaf Systems despite a security review panel's recommendation
that the company cancel the deal.
But in a weekend statement, the company reversed course and said it would
withdraw its application to acquire assets from 3Leaf.
U.S. critics of the deal complained it might allow sensitive technology to be
transferred to China's military. The Chinese government appealed last week for
Washington to carry out a fair, transparent review process.