Chinese telecom equipment firm Huawei Technologies said Monday that it would wait for a decision from President Obama before it acts on a U.S. national security panel’s recommendation that it divest 3Leaf Systems, a small U.S. technology firm that Huawei bought out of bankruptcy in May. Huawei, which recently claimed the rank of the world’s second-largest supplier of telecommunications equipment, acquired 3Leaf—a start-up provider of server technologies—without first notifying the Committee on Foreign Investment in the United States (CFIUS). CFIUS, an interagency panel comprised of representatives of various Cabinet level departments, is tasked with reviewing the national security implications of private sector deals. As lawmakers and other U.S. officials have voiced concern with Huawei’s alleged ties to the Chinese government, the company has encountered steep hurdles in its attempts to enter the U.S. telecom market. In the wake of U.S. government opposition, Huawei was forced to abandon its agreement to purchase U.S. equipment vendor 3Com in 2008. Last year, Huawei was dropped as a contender for a major contract to supply wireless infrastructure equipment for Sprint Nextel’s network upgrade. After the Pentagon learned of the 3Leaf purchase, Huawei was asked to submit the deal retroactively to a CFIUS review. Confirming on Monday that the CFIUS panel had recommended 3Leaf’s divestiture, Huawei USA Vice President Bill Plummer said that his company would instead wait for a final determination from President Obama who has the option to accept or reject CFIUS recommendations, adding that divestiture as demanded by CFIUS “would have tarnished our brand and reputation.” Stressing that his company is fully controlled by employees and lacks any ties to the Chinese government, Plummer said, “we would welcome a transparent national security agreement that would allow the U.S. full visibility into all aspects of our operations, employees and facilities in the United States.”