Huawei ensnared in another U.S. security concern

Huawei Technologies Co. Ltd. has been caught up in yet another security snafu inside the Beltway, this time for a small acquisition it made back in May.
The $2 million deal to acquire staff and intellectual property of 3Leaf Systems has already closed, but the Committee on Foreign Investment in the U.S. is retroactively reviewing the acquisition to look for national security implications. Officials at the Pentagon were not aware of the deal until after it closed and have since asked the company to clear it with CFIUS, according to The Wall Street Journal.
Huawei has since filed an application with CFIUS. If the agency considers the tie-up a threat to U.S. national security it could force to company to either sell the assets or limit its use of the technology that enables server computers to work together.
The group previously blocked the Chinese vendor and Bain Capital from acquiring 3Com and subsequent acquisition attempts, such as a buy-in to Harbinger Capital LLC’s LTE network have hit the brakes over security concerns as well.