After vowing last week to seek presidential review of a Committee on Foreign Investment in the U.S. (CFIUS) recommendation that it divest U.S. technology firm 3Leaf Systems, Chinese telecom equipment firm Huawei Technologies said Monday that it would withdraw its request to retain 3Leaf, admitting: “the significant impact and attention that this transaction has caused were not what we intended.” Huawei’s decision eliminated the potentially difficult diplomatic dilemma that President Obama would have been faced had Huawei persisted in its earlier demand for a presidential pronouncement. While confirming that Huawei is working on an agreement with the Treasury Department (the lead CFIUS agency) on terms that cover 3Leaf’s divestiture, Huawei USA vice president Bill Plummer said that putting President Obama in such a position was not “our intent.” Notwithstanding Plummer’s conciliatory tone, the Chinese government took U.S. officials to task for their role in the 3Leaf controversy and in previous instances in which the U.S. government cited national security concerns in opposing Huawei’s attempts at U.S. market entry. Asserting that the blocked 3Leaf deal “affected the bilateral cooperation between China and the U.S. to a certain extent,” a spokesman for China’s Ministry of Commerce urged “relevant parties” in the U.S. to “treat Chinese companies, no matter whether they are listed companies, state-owned companies or private companies, fairly . . . and implement more transparent and predictable procedures.” In reply, a U.S. Treasury Department spokeswoman affirmed, “we strongly support the longstanding bipartisan U.S. commitment to welcoming foreign investment, consistent with national security,” which “includes investment from China.”