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The Chinese telecommunications company, Huawei announced on Monday it would no longer pursue plans to buy U.S.-based tech firm 3Leaf Systems.
It comes as a bit of a surprise as just days ago Huawei rejected a request from the Committee on Foreign Investment in the United States (CFIUS) to drop the deal.
The decision to reverse course on the two million dollar acquisition deal comes after a panel of U.S. lawmakers cited security concerns—alleging Huawei has connections to the Chinese army, the Taliban, and the Iranian Revolutionary Guard.
Huawei founder and CEO Ren Zhengfei—a former Chinese army engineer—denies these connections.
A statement released by Huawei on Monday seems to indicate it had backed out of the deal to avoid more negative media coverage and to protect its image.
