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Huawei dares the US in bid to clear its name |
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Chinese telecommunications giant Huawei Technologies has asked the United States to initiate a formal investigation into its business, in a bid to clear its name from allegations that have come in the way of deals in the US. In an open letter available on the company's website, Ken Hu, Deputy Chairman of Huawei Technologies and Chairman of Huawei USA, said the company has been combating “misperceptions” for almost 10 years, including what he said were “unfounded and unproven claims of "close connections with the Chinese military,” "disputes over intellectual property rights,” "allegations of financial support from the Chinese government,” and "threats to the national security of the United States.” The move comes in the light of a recent US government foreign investment review that has mandated that Huawei sell assets it acquired from 3Leaf, a small US company. On its part, Huawei says Futurewei, its US subsidiary, bought certain assets from the insolvent technology start-up based in Santa Clara, California, in May and July 2010, as 3Leaf was ceasing its operations and no other buyers came forward to acquire its intellectual property, which it submitted to review by the Bureau of Industry and Security at the Department of Commerce and CFIUS, which recommended that it withdraw its application to acquire specific assets of 3Leaf. A few years ago, Huawei had to forgo a proposed investment in 3Com for similar reasons The company said the “misperception” about its relationship with the Chinese military stems from the fact that its founder, Ren Zhengfei, served in the People's Liberation Army until 1983, before setting up the company in 1987. “It is a matter of fact that Mr. Ren is just one of the many CEOs around the world who have served in the military, and it is also a matter of fact that Huawei has only offered telecommunications equipment that is in line with civil standards. It is also factual to say that no one has ever offered any evidence that Huawei has been involved in any military technologies at any time,” the open letter reads. On the issue of intellectual property rights, the letter pointed out that the company paid around $600 million to Qualcomm in fee for using its technology and Cisco Systems also chose to drop a suit it had filed in 2003 against Huawei over an alleged infringement. “We sincerely hope that the United States government will carry out a formal investigation on any concerns it may have about Huawei,” the letter concludes, saying that it believes that the result of such an investigation “will prove that Huawei is a normal commercial institution and nothing more.”Keywords: Huawei, US government, investigation, intellectual property, news, software industry Huawei dares the US in bid to clear its name Chinese telecommunications company Huawei has dared the United States to initiate an investigation into its business in a bid to clear its name from allegations that have persisted for some time. Chinese telecommunications giant Huawei Technologies has asked the United States to initiate a formal investigation into its business, in a bid to clear its name from allegations that have come in the way of deals in the US. In an open letter available on the company's website, Ken Hu, Deputy Chairman of Huawei Technologies and Chairman of Huawei USA, said the company has been combating “misperceptions” for almost 10 years, including what he said were “unfounded and unproven claims of "close connections with the Chinese military,” "disputes over intellectual property rights,” "allegations of financial support from the Chinese government,” and "threats to the national security of the United States.” The move comes in the light of a recent US government foreign investment review that has mandated that Huawei sell assets it acquired from 3Leaf, a small US company. On its part, Huawei says Futurewei, its US subsidiary, bought certain assets from the insolvent technology start-up based in Santa Clara, California, in May and July 2010, as 3Leaf was ceasing its operations and no other buyers came forward to acquire its intellectual property, which it submitted to review by the Bureau of Industry and Security at the Department of Commerce and CFIUS, which recommended that it withdraw its application to acquire specific assets of 3Leaf. A few years ago, Huawei had to forgo a proposed investment in 3Com for similar reasons The company said the “misperception” about its relationship with the Chinese military stems from the fact that its founder, Ren Zhengfei, served in the People's Liberation Army until 1983, before setting up the company in 1987. “It is a matter of fact that Mr. Ren is just one of the many CEOs around the world who have served in the military, and it is also a matter of fact that Huawei has only offered telecommunications equipment that is in line with civil standards. It is also factual to say that no one has ever offered any evidence that Huawei has been involved in any military technologies at any time,” the open letter reads. On the issue of intellectual property rights, the letter pointed out that the company paid around $600 million to Qualcomm in fee for using its technology and Cisco Systems also chose to drop a suit it had filed in 2003 against Huawei over an alleged infringement. “We sincerely hope that the United States government will carry out a formal investigation on any concerns it may have about Huawei,” the letter concludes, saying that it believes that the result of such an investigation “will prove that Huawei is a normal commercial institution and nothing more.” |
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