Thursday, October 18, 2007

The 3Com-Huawei deal: Get lost!

Blocking the merger of a U.S. computer security company and a Chinese firm -- one with direct ties to Beijing's military -- sends a clarion message to China's techno-thieves that can't be said loud enough: Get lost.

Legislation introduced by House Republicans urges President Bush to prevent the $2.2 billion proposal by the investment company Bain Capital Partners LLC and China's Huawei Technology to buy 3Com Corp. The latter sells hacker protection to the Pentagon.

The Bush administration says Congress shouldn't pre-empt a national-security investigation. But it's the same type of review that last year gave a thumbs-up to the scuttled United Arab Emirates' deal to buy operational control of six U.S. ports.

Bain Capital insists "Huawei will not have any access to sensitive U.S.-origin technology or U.S. government sales as a result of this transaction." Excuse us, but past experience with aggressive Chinese computer hackers and Huawei's business partners leaves us less than convinced.

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