China's Huawei [HWT.UL] said it would back away from its acquisition of U.S. server technology company 3Leaf's assets, bowing to pressure from a U.S. government panel that had suggested it should divest the assets. The U.S. government has been concerned about Huawei, China's largest telecommunications equipment maker, for years because of uncertainty over its relationship with the Chinese government. Huawei was founded by a People's Liberation Army soldier, and opponents say it retains links with China's security services. Huawei has denied the links. Huawei bought certain 3Leaf assets for $2 million last May but did not file with the Committee on Foreign Investment in the United States (CFIUS), which reviews deal for possible national security implications, until November.
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