Dubai Ports redux over China deal

Get ready for the possibility of a sequel to the Dubai Ports fracas. Only this time, the outcome of the deal under consideration will have implications for U.S.-China economic relations.

Political fire crackers are popping across Capitol Hill over Bain Capital Partners' announced acquisition of 3Com Corp (Charts)., which will provide a minority stake to Huawei Technologies Co., China's largest telecommunications equipment manufacturer.

"We are deeply troubled by the national security implications of the sale," Arizona Senator Jon Kyl says in a draft letter, obtained by Fortune and addressed to Treasury Secretary Henry Paulson. The draft is circulating in the Senate for additional support. In the House, eight members have introduced a resolution urging the government to reject the deal on national security grounds, citing the Chinese company's military ties.


Source:CNN Money.com