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Wiley Rein's Nova Daly Quoted in Article on Challenge to CFIUS Recommendation
Nova J. Daly, a former Treasury Deputy Assistant Secretary for the Committee on Foreign Investment in the United States (CFIUS) and now public policy consultant with Wiley Rein’s International Trade Practice, was quoted by the Financial Times regarding a surprise decision by the Chinese telecommunications company Huawei Technologies Co., Ltd. to forego a recommendation made by CFIUS and seek judgment by President Obama.
CFIUS reviewed Huawei’s acquisition of 3-Leaf Systems, a server technology firm based in San Francisco, and according to press, ultimately requested that the company divest the transaction. Huawei then made the unprecedented decision to forego CFIUS’ recommendation and instead obtain a final judgment from the president. Mr. Daly said that “Huawei still had time to back off from its decision, agree [to] a security arrangement with the government and spare itself a negative decision by Mr. Obama.” He added that “if it [Huawei] does not change course, the president politically will be in an extremely difficult position to do anything but block it.”