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Financial intel killed The Pentagon's intelligence directorate is killing off one of its most strategically important mission areas: monitoring efforts by foreign governments to buy U.S. firms and technology, such as the multiple efforts by China's military-linked equipment company Huawei Technologies to buy into the U.S. high-technology sector.
Motorola Solutions Inc. and Chinese telecommunications giant Huawei Technologies Co. Ltd. announced on Wednesday that they settled competing lawsuits in federal court in Chicago, paving the way for Motorola Solutions to sell a segment of its business to Nokia Siemens Networks B.V. Motorola Solutions is one of two companies surviving from a January split up of the former Motorola Inc. Motorola Solutions provides communications products and services to industry and governments. Motorola Mobility Holdings Inc. retains the cell phone side of the business.
A U.S. intelligence report for the first time links China's largest telecommunications company to Beijing's KGB-like intelligence service and says the company recently received nearly a quarter-billion dollars from the Chinese government. The disclosures are a setback for Huawei Technologies Co. Ltd.'s efforts to break into the U.S. telecommunications market. The company has been blocked from doing so three times by the U.S. government because of concerns about its links to the Chinese government.
S. intelligence and security agencies are warning Congress and the telecommunications industry that an American company's plan to use Chinese components in cell-phone towers for the next generation wireless network will make communications vulnerable to electronic spying by Beijing. Over the past four months, National Counterintelligence executive Robert Bryant has briefed the House and Senate intelligence committees with warnings about the risks of a Chinese company, Huawei Technologies, providing key components of the fourth generation, or 4G, wireless network in the United States.
A Chinese telecommunications company suspected of links to China's military has won hundreds of contracts in Iraq since the 2003 U.S.-led invasion, some paid in part with U.S. tax dollars, and now effectively owns the country's phone system. Huawei Technologies has won more than 600 telecommunications infrastructure contracts since Iraqi reconstruction began in 2004, said Robert C. Fonow, the State Department's senior adviser to Iraq's Telecommunications Ministry from 2006 to 2008.
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