Scrutiny for Chinese Telecom Bid

Scrutiny for Chinese Telecom Bid
Scrutiny for Chinese Telecom Bid

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By David Barboza
The New York Times
August 22, 2010

SHANGHAI -- Warning about a potential threat to national security, eight 
Republican lawmakers have asked the Obama administration to scrutinize a 
bid by one of the biggest corporations in China to supply 
telecommunications equipment to Sprint Nextel in the United States.

In a letter sent last week to top administration officials, including 
Treasury Secretary Timothy F. Geithner and the director of national 
intelligence, Lt. Gen. James R. Clapper Jr., the senators expressed 
concern over claims that the company had sold equipment to the regime of 
Saddam Hussein and had a close business relationship with the Islamic 
Revolutionary Guard in Iran.

The senators also said the company, Huawei Inc., had close ties to the 
People=E2=80=99s Liberation Army in China.

=E2=80=9CSprint Nextel supplies important equipment to the U.S. military and law 
enforcement agencies, and it offers a broad array of devices, systems, 
software and services to the private sector,=E2=80=9D wrote the group of 
senators, including Jon Kyl of Arizona, Christopher S. Bond of Missouri 
and Susan Collins of Maine. =E2=80=9CWe are concerned that Huawei=E2=80=99s position as 
a supplier of Sprint Nextel could create substantial risk for U.S. 
companies and possibly undermine U.S. national security.=E2=80=9D

A campaign to block Huawei=E2=80=99s bid to sell equipment in the United States 
would almost certainly aggravate American-Chinese trade relations and 
intensify a longstanding debate over whether big Chinese companies will 
be allowed to invest in sensitive industries in the United States.


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