IV 
110TH CONGRESS 
1ST SESSION 
H. RES. 730 
Expressing the sense of the House of Representatives regarding the planned 
acquisition of a minority interest in 3Com by affiliates of Huawei. 
IN THE HOUSE OF REPRESENTATIVES 
OCTOBER 10, 2007 
Ms. ROS-LEHTINEN (for herself, Mr. MCCOTTER, Mr. HOEKSTRA, Mrs. 
BOYDA of Kansas, Mr. BURTON of Indiana, Mr. CULBERSON, Mr. ROHR-
ABACHER, and Mr. CALVERT) submitted the following resolution; which 
was referred to the Committee on Financial Services, and in addition to 
the Committees on Foreign Affairs and Energy and Commerce, for a pe-
riod to be subsequently determined by the Speaker, in each case for con-
sideration of such provisions as fall within the jurisdiction of the com-
mittee concerned 
RESOLUTION 
Expressing the sense of the House of Representatives regard-
ing the planned acquisition of a minority interest in 
3Com by affiliates of Huawei. 
Whereas, on September 28, 2007, 3Com Corporation an-
nounced it had signed a definitive merger agreement to 
be acquired by affiliates of Bain Capital Partners, LLC; 
Whereas, as part of that transaction, affiliates of Huawei 
Technologies would acquire a minority interest in the 
company and become a commercial and strategic partner 
of 3Com; 
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•HRES 730 IH 
Whereas Marlborough, Massachusetts-based 3Com sells a 
broad range of data-networking equipment, including 
‘‘Federal Information Processing Standards’’ (FIPS)— 
certified security local area network solutions for the 
Federal Government, including the Department of De-
fense and civilian agencies, military organizations, and 
contractors; 
Whereas Huawei is headquartered in Shenzen, China, is a 
privately held company that was established in 1988 by 
Ren Zhengfei, a former People’s Liberation Army officer, 
and is currently the largest telecommunications supplier 
in China; 
Whereas Huawei lines of business include research, develop-
ment, manufacturing, and marketing of telecommuni-
cation equipment, including switches, optical access net-
works, mobile and wireless communications, data commu-
nications, and intelligent networks; 
Whereas, since 1988, the company has rapidly expanded from 
a small enterprise to become a global provider of telecom 
services, with over 61,000 employees and over $8.5 billion 
in revenues, including 12 research and development cen-
ters around the world such as in the Silicon Valley and 
Dallas, Texas, Bangalore, India, Stockholm, Sweden, and 
Moscow, Russia; 
Whereas, since 2001, Huawei has actively sought entry into 
international markets, reportedly using government sub-
sidies to support aggressive pricing needed to help cap-
ture market share; 
Whereas the ownership structure of Huawei, including pos-
sible links to the Government of the People’s Republic of 
China, including the People’s Liberation Army, is so 
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opaque that the company has been described as ‘‘one of 
the least transparent in China’’; 
Whereas Huawei was identified by United States intelligence 
agencies as the supplier of fiber optic equipment to Iraqi 
air defense systems during the late 1990s; 
Whereas a March 17, 2001, Washington Post article stated 
that ‘‘Pentagon officials have accused the company of 
laying optical communications cables between Iraqi anti-
aircraft batteries, radar stations, and command centers, 
which they say could significantly aid Baghdad’s efforts 
to shoot down U.S. warplanes patrolling the ‘no-fly’ zones 
over northern and southern Iraq’’; 
Whereas, according to a November 16, 2005, article in the 
Asia Times, India’s Research and Analysis Wing (RAW) 
reportedly charged in August 2002 that Chinese engi-
neers at the Bangalore office of Huawei were involved in 
developing state-of-the-art telephone surveillance equip-
ment for the former Taliban regime in Afghanistan; 
Whereas, according to that same article, an official with In-
dia’s Ministry of External Affairs was quoted as saying 
that Huawei’s operations in India ‘‘have come to the ad-
verse notice of India’s security agencies, which have ex-
pressed reservations regarding the company’s links with 
the Chinese intelligence and military establishments’’; 
Whereas, on August 26, 2007, the German news magazine 
Der Spiegel reported recently that computers in the Ger-
man chancellery and the foreign, economic, and research 
ministries had been infected with Chinese spyware soft-
ware, and German officials say they believe the hackers 
were linked to China’s People’s Liberation Army; 
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Whereas, on September 3, 2007, the Financial Times re-
ported that the Chinese military hacked into a Pentagon 
computer network in June, 2007, in the most successful 
cyber attack ever on the Department of Defense; 
Whereas, on September 6, 2007, London’s The Times Online 
reported that China leads the list of countries hacking 
into government computers that contain Britain’s mili-
tary and foreign policy secrets; 
Whereas the Committee on Foreign Investment in the United 
States (CFIUS) is an interagency committee, originally 
created by executive order, that serves the President in 
overseeing the national security implications of foreign 
investment in the economy; 
Whereas the proposed acquisition of commercial operations at 
six United States ports by Dubai Ports World in 2006 
caused the CIFUS process to come under intense scru-
tiny by Members of Congress and the American public; 
Whereas the Foreign Investment and National Security Act 
of 2007 (Public Law 110–49) established CFIUS by stat-
utory authority and further clarifies and enhances United 
States Government scrutiny of acquisitions of critical in-
frastructure assets by non-United States investors; 
Whereas the Foreign Investment and National Security Act 
of 2007 formalizes prior CFIUS practice of considering 
‘‘critical infrastructure’’ transactions to be within the 
scope of its review; 
Whereas the economic and national security of the United 
States relies, in large part, on the security and reliability 
of information systems and networks that increasingly 
are linked to consumer and investor confidence; 
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Whereas, without appropriate mitigation, foreign ownership 
of United States telecommunications service providers 
could multiply opportunities for espionage, hinder law en-
forcement, and disrupt critical infrastructure and related 
services; 
Whereas Presidential Decision Directive 63 on Critical Infra-
structure Protection, the creation of the Department of 
Homeland Security, and the publication of both the Na-
tional Strategy for the Physical Protection of Critical In-
frastructures and Key Assets and the National Strategy 
to Secure Cyberspace, establish an evolving policy frame-
work for protecting the critical infrastructure of the 
United States; and 
Whereas, as part of Huawei’s and Bain Capital Partners’ 
proposed merger agreement with 3Com, Bain announced 
its intention to voluntarily submit to the CFIUS process: 
Now, therefore, be it resolved— 
Resolved, That it is the sense of the House of Rep-
resentatives that— 
(1) the planned acquisition of a minority inter-
est in 3Com by affiliates of Huawei triggers a num-
ber of statutory factors to be considered by the 
President and members of the CFIUS Committee 
and which are necessary to block a foreign acquisi-
tion, including— 
(A) the control of domestic industries and 
commercial activity by foreign citizens as it af-
fects the capability and capacity of the United 
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