China has appealed to the United States for fair and legal treatment of a Chinese investment in US communications equipment company 3Com after the deal caused the United States national security concerns.
China's Huawei Technologies with its partner US private equity firm Bain Capital invested $2.2 billion to purchase 3Com Corp. The deal has been halted after it became clear it would not win approval from a Washington committee that scrutinises foreign investments in sensitive sectors.
Liu Jianchao, Chinese foreign ministry spokesman, dismissed complaints from US politicians that the deal would threaten US national security yesterday.
This was a normal business investment in accordance with market rules. We hope relevant management departments of the United States can deal with this issue fairly and in accordance with the law. Liu said.
Bain Capital and 3Com Corp. has announced to withdrawal the application while Huawei would have owned as much as 16.5 percent of 3Com initially.
As China's top telecom equipment maker, Huawei's encounter may make Chinese dare not to consider a similar investment plan.