The Committee on Foreign Investment in the United States (CFIUS) ruled on Tuesday that Huawei Technologies must divest itself of invesments made in 3Leaf Systems, a small US technology company, the Wall Street Journal reported. The committee said Huawei’s purchase posed a national security risk, and told the company that it would recommend the dissolution of the deal to President Barack Obama if it declined to sell its 3Leaf assets. However, CFIUS’s decision is non-binding for the president, and Huawei has decided to leave it up to his judgement, rather than divest. "To withdraw and divest would have tarnished our brand and reputation," said Bill Plummer, vice president for government affairs at Huawei USA. The Chinese firm said it did not initially disclose the investment, as it only purchased intellectual property and 3Leaf servers, in addition to hiring 15 employees.
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