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Update on 3Com-Huawei Merger

Posted by Joshua Price on October 17, 2007

I wanted to get to this yesterday but I just didn’t have enough time.

We know a little more about the potential merger of 3Com and Huawei Technology. It looks like we may be heading for another Dubai Ports situation with this one. There was an article in yesterday’s Washington Times by Bill Gertz on this very subject:

House Republicans have introduced legislation calling for the Bush administration to block the merger of a U.S. computer-security equipment company and a Chinese firm with close ties to Beijing’s military and a history of illicit exports and industrial espionage.

Sen. Christopher S. Bond, vice chairman of the Senate Intelligence Committee, meanwhile, said yesterday he favors the Treasury Department review of the merger, but does not want Congress to pre-empt the administration’s national-security investigation of the deal.

As to be expected, Bain Capital, the firm helping to broker this deal and who Mitt Romney used to work for, is essentially saying that there is nothing to worry about:

“Huawei will not have any access to sensitive U.S.-origin technology or U.S. government sales as a result of this transaction.”

We were told the same types of things last year with the Dubai Ports deal, and very much like that deal, many officials and experts are expressing their concern over this deal. According to the article:

Defense and intelligence officials have said China’s military, which has engaged in aggressive computer hacking against Pentagon and U.S. government computers, will gain additional access to 3Com equipment used to detect such intrusions if the deal is approved by the multi-agency CFIUS.

Huawei also was linked to industrial espionage against Cisco Systems and Japan’s Fujitsu several years ago, the officials said.

But remember, we have nothing to worry about. What is the excuse going to be this time? We have to allow this deal to go through because we need allies in the communist world? After all, we were told last year that we needed to allow Dubai World to buy into some of our ports as a show of trust in the Arab world.

You have liberalism, multiculturalism and globalism to thank for this by brainwashing people to believe that America is bad and that you have an incomplete nation without multiculturalism. And let’s not forget the greed of our wonderful mulitnational corporations that have no loyalty to their home country. Many corporations have lost sight of the fact that there is a right and wrong way to conduct business. Actually, let me re-phrase that: because of liberalism and globalism, corporations believe that these types of actions are the right ones to take. The bottom line is it’s all about the bottom line.

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