A chilling comment to the WSJ on Huawei/Bain/3COM Deal

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By Dan Mosqueda

Recently, Congressman Thaddeus McCotter (R-Mi)  has been campaigning successfully to stop a proposed buyout of 3Com by Bain Capital (founded in part by Gov Mitt Romney) and Communist China's Huawei Technologies.  The Wall Street Journal's Heidi Moore reports that "the Pentagon is worried that 3Com’s pending deal to sell itself to Bain Capital and China’s Huawei Technologies is a real threat to national security."  Her report goes on to say the Department of Defense, in it's recent report (see http://danmosqueda.blogspot.com/2008/03/china-increases-military-budget-by-at.html for more information) "calls out Huawei by name: Information technology companies, including Huawei, Datang, and Zhongxing maintain close ties to the PLA and collaborate on research and development." 

The Report goes on to say "the People’s Liberation Army (PLA) is pursuing comprehensive transformation from a mass army designed for protracted wars of attrition on its territory to one capable of fighting and winning short duration, high intensity conflicts along its periphery against high-tech adversaries – an approach that China refers to as preparing for “local wars under conditions of informatization."

As if this report isn't scary enough, a reader on the WSJ blog wrote:

"I worked at Huawei R&D centers in Shenzhen headquarters and Shanghai before coming to the U.S. for my graduate degrees. We (Huawei) did develop cellular and data intercept equipments primarily for PLA and the National Security Bureau (NSB) of China, the notorious secret police involved in Yahoo’s snitcher scandal.

When working in the Lab, I constantly saw some teams studied a variety of components from SAIC/Cisco/Alliant Techsystems/Raytheon/Honeywell (if you don’t know what products those company make, simply google th’m). Didn’t how where the hell they got those things from, but I didn’t care since I wasn’t in those teams.

Look here is my point: I love China for she is my motherland; but the last thing I’d like to see is a communism dictatorship. So I personally believe there is a good reason to block the Bain Capital/3Com deal.

Btw, Bain Capital is a traitor, at least somebody at the firm. Or should I believe somebody at Bain Capital have been “penetrated” by NSB?

Comment by Ex-Huaweier - March 4, 2008 at 3:14 pm"

And here's the real rub:  There are reports Senator John McCain is considering Governor Mitt Romney as his running mate.  It seems pretty clear Romney is relatively far removed from Bain at this time, but this falls into the category of "perception is the greater part of reality."  Having a running mate connected, no matter how loosely, to the Chinese Communist PLA cannot be a good thing for Senator McCain, nor for the nation at large.

I applaud Congressman McCotter for his courage in fighting this merger and bringing this situation to light.  The Chinese are pretty upset and have referred to the congressman in very rude terms.  He is not backing down.  Perhaps Thaddeus McCotter would be a better choice for the next Vice President of the United States.

To read the WSJ blog click here.

Learn about Thaddeus McCotter here: http://mccotter.house.gov/HoR/MI11/About+Thaddeus/

McCotter Comments on Possible New Huawei/Bain/3Com Merger

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WASHINGTON DC – News circulated today Bain Capital and communist China's Huawei plan to resubmit an application seeking U.S. approval for a planned buyout of American 3Com Corporation within the next several weeks. Congressman Thaddeus McCotter (R-MI) made the following comments on the possible new merger:

"No business can sufficiently structure such deals to protect America from this stealth assault on America's national security.  It is the solemn duty of the United States government to protect our liberty from all threats; and CFIUS must again do its job and reject this latest threat to our cyber-security."

Last October Massachusetts based Bain Capital and communist China's Huawei tried to purchase 3Com Corp, an American company which provides the Pentagon with security technologies.

The deal collapsed earlier this month when the three companies withdrew their applications to the Committee on Foreign Investment in the United States (CIFIUS), because they could not calm national-security concerns with the U.S. government panel. Specifically in question was 3Com's Tipping Point unit, which sells security software used by U.S. government agencies.

McCotter, Chairman of the House Republican Policy Committee, was the first member of Congress to bring this issue to public attention and oppose it.  In early October 2007 Congressman McCotter circulated a letter signed by his colleagues and subsequently sent to CFIUS.  McCotter also continued to oppose the deal, despite communist Chinese inspired personal attacks in the media.

Bain Capital LLC is a Boston, Massachusetts-based private equity firm founded in 1984 by Mitt Romney, T. Coleman Andrews III and Eric Kriss; all partners in the consulting firm Bain & Company. Romney was the Governor of Massachusetts from 2003 to 2007. Bain Capital was originally conceived as a combined equity start-up and leveraged buyout fund, an innovative strategy at the time.