Thursday - October 11, 2007
Chinese Company Plans to Buy 3Com
When concern with the bottom line is more important than one's allegiance to the United States, this republic is in grave danger. We live in a new gilded ages. CEO's make millions in bonuses, but they nickel and dime their employees or worse, they send American jobs overseas.
In this case, one American capital firm is helping a Chinese company with strong ties to the CCP and the Chinese military buy out 3Com, an American company that provides technology to the DOD. The left hates their country and on the right, we'd sell it out for a few pieces of silver.
On paper, Huawei seems like a nice little Chinese telecom. It has the backing of U.S. Bain Capital Partners to go ahead with a plan to buy out the American communications firm 3Com.
With such high power backing one could rest assured that all is well with Huawei.
However, Huawei is close to the Chinese military and 3Com makes equipment used by the Pentagon to block computer hackers, including those from the Chinese military.
According to a Rand Corporation report, the Huawei Shenzhen Technology Company was founded in 1988 by Ren Zhengfei, a former director of the PLA General Staff Department’s Information Engineering Academy. Zhengfei is an ex-staff officer of the People’s Liberation Army.
The department that Zhengfei left is responsible for telecom research for the Chinese military.
“Huawei maintains deep ties with the Chinese military, which serves a multi-faceted role as an important customer, as well as Huawei’s political patron and research and development partner. Both the government and the military tout Huawei as a national champion,” notes the Rand report.
Yet, there is more to Huawei than mere “deep ties” to the Chinese military. According to a May 2004 U.S. Defense Department report to the inspector general, obtained under the Freedom of Information Act, Huawei is “a Chinese company that operated in Iraq under Saddam Hussein.”
Huawei’s operations inside Saddam’s Iraq included smuggling in communications gear forbidden by the U.N. and taking payments in the form of cash from the Iraqi oil-for-food program. In fact, Huawei’s antics inside Iraq were detailed by the CIA in its Iraq Survey Group final report.
“One Chinese company, illicitly provided transmission equipment and switches to Iraq from 1999 to 2002 for projects that were not approved under the UN OFF Program. Reporting indicates that throughout 2000, Huawei, along with two other Chinese companies, participated in extensive work in and around Baghdad that included the provision and installation of telecommunication switches, more than 100,000 lines, and the installation of fiber-optic cable,” noted the CIA report.
The fiber-optic systems installed by Huawei, in violation of the U.N. sanctions, had a much more sinister function than providing Saddam with access to the Internet. That function was spelled out in 2001 Senate testimony from Gary Milhollin, professor emeritus, University of Wisconsin Law School and director, Wisconsin Project on Nuclear Arms Control.
Huawei, according to Milhollin, was “caught helping Iraq improve its air defenses by outfitting them with fiber optic equipment. The assistance to Iraq was not approved by the United Nations, and thus violated the international embargo.” Read more....
Author: The Machiavellian
Technorati Tags: China
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