Huawei calls out US government over 3Leaf saga

Shaun Nichols in San Francisco
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Chinese telecommunications firm Huawei has issued a scathing letter to the US government following its failed acquisition of server vendor 3Leaf.

In the letter (PDF), posted by the Wall Street Journal, the company challenged claims ranging from its involvement with the government of China and its military to its policies regarding intellectual property rights and licencing regulations.

Additionally, Huawei invited US regulators to investigate the company and vowed to comply with regulations required to do business in the country.

"If the United States government has any real concerns of this nature about Huawei we would like to clearly understand those concerns, and whether they relate to the past or future development of our company," wrote Huawei USA chairman Ken Hu.

"We believe we can work closely with the United States government to address any concerns and we will certainly comply with any additional security requirements."

The letter comes after the company was forced to give up its proposed acquisition of assets from 3Leaf. The deal was said to have been abandoned after the Council of Foreign Investment in the US (CFIUS) raised objections to the transaction.

Huawei has in the past been suspected of involvement in activities linked to the Chinese government. In the letter, the company denies any role in illicit activity and said that its involvement with the government is no different than that of firms in the US and other western countries.

Additionally, the company objected to claims that it did not respect intellectual property rights and licensing deals. Hu noted that the company has settled cases with firms such as Cisco and last year paid out $222m in licensing fees.

"The American telecommunications market is the largest in the world and Huawei has been striving to demonstrate our capabilities with a view to becoming a key contributor in this important market," wrote Hu.

"However, unfounded accusations have jeopardized our business activities, with many false claims driven by competitive interests, which we understand because competition can be difficult."