China decries U.S. "obstruction" after Huawei drops bid

BEIJING Mon Feb 21, 2011 6:15am EST

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BEIJING Feb 21 (Reuters) - China's Commerce Ministry said Chinese businesses faced damaging "obstruction" in efforts to invest in the United States after China's Huawei [HWT.UL] pulled out of bidding for U.S. company 3Leaf's assets following pressure from a Washington panel.

Telecom equipment maker Huawei bought some assets of server technology firm 3Leaf for $2 million last May, but the Committee on Foreign Investment in the United States (CFIUS) suggested that the Chinese company divest itself of the assets.

"We express regret over the outcome of this case," a Chinese Commerce Ministry official said in a statement on the ministry website (www.mofcom.gov.cn).

"In recent years, the U.S. side has used all kinds of excuses, including national security, to engage in obstruction and interference in the trade and investment activities of Chinese businesses in the U.S." said the official.

"To some extent, this obstruction and interference is affecting China-U.S. trade and economic cooperation." (Reporting by Chris Buckley and Zhou Xin; Editing by Simon Rabinovitch)

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