Intelligence report hits China deal

More blowback via Bill Gertz in the D.C. Times to the proposed merger of 3Com into a ChiCom “business”:

U.S. intelligence agencies informed a Treasury Department-led review committee recently that a merger between 3Com and a Chinese company would threaten U.S. national security, The Washington Times has learned.

Bush administration intelligence officials said the Office of the Director of National Intelligence (DNI) recently submitted a required threat assessment to the Committee on Foreign Investment in the United States, known as CFIUS, which is conducting a 30-day investigation of the proposed deal between 3Com and China’s Huawei Technologies.

The assessment, which is classified, described the deal as posing a “threat” to U.S. national security, according to officials familiar with the document.

Another maladroit attempt, with even more of a problem than the late, unlamented Dubai ports deal.