Huawei in Challenge to US

Social media sites – like LinkedIn or Facebook – make it easy for companies to find customers, employees, suppliers and more. But they also help regulators uncover troublesome connections. Such a case – with US regulators perusing LinkedIn and accidentally discovering that China’s telecom giant Huawei had purchased, without government review, interest in a California firm that makes cloud computing technology – is described in the Financial Times by Stephanie Kirchgaessner and Kathrin Hille. The company rejected a recommendation from the US Committee on Foreign Investment, instead expressing intention to file a direct appeal with the US president. “Some outside observers expressed surprise that a company which knew it was under close scrutiny by the US government had decided not to notify it of the deal,” report the authors. The stand-off over a $2 million deal could invite retaliation and new levels of scrutiny by both Chinese and US governments over cross-border deals. – YaleGlobal

Huawei in Challenge to US

Regulators, using LinkedIn, discover a Chinese firm bypassed Cfius approval to invest in US high-tech firm
Stephanie Kirchgaessner, Kathrin Hille
Thursday, February 17, 2011
Copyright The Financial Times Limited 2011.

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