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Two Hytera staff members introduce their products to visitors on an exposition in Haikou, South China's Hainan Province. File photo: IC



Hytera Communications Corp's takeover of a Canadian high-technology company is a pure market move, and the Chinese company will not give up seeking growth in the global market despite obstacles posed by foreign countries, the company told the Global Times on Wednesday.

Hytera started seeking growth across the world in 2002 and has always tried to comply with market rules and compete fairly with foreign companies, Hytera said, noting that "it will stick to China's 'going global' strategy."

The comment came after a US congressional commission warned Monday that Canada's decision to approve a Chinese takeover of the company, which sells satellite-communication systems to the US military, endangers US national security, and urged the Pentagon to "immediately review" the deal, The Globe and Mail newspaper in Canada reported.

The Canadian government in early June approved the takeover of Vancouver-based Norsat International Inc by Hytera, a mobile radio communications solution provider based in Shenzhen, South China's Guangdong Province.

"Canada's approval of the sale of Norsat to a Chinese entity raises significant national-security concerns for the US as the company is a supplier to our military," the US-China Economic and Security Review Commission Commissioner Michael Wessel was quoted as saying in the report.

The commission said in the report that Canada's Liberal Party "appears to be willing to sacrifice the national-security interests of its most important ally in exchange for obtaining a bilateral free-trade deal with China."

Norsat's customers include the US Department of Defense, the US Marine Corps, the US Army, Ireland's Department of Defence, the Taiwan army and major US companies such as aircraft manufacturer Boeing, as well as media organizations including CBS News, Fox News and Reuters, showed information on Norsat's website.

"The US side has issued a rebuke over the deal as the Canadian company is somewhat related to the US. This is not an isolated case," said Wang Jun, deputy director of the Department of Information at the China Center for International Economic Exchanges.

In the past decade, the US announced many reviews of takeovers by foreign companies in a wide range of industries citing "national security" concerns, showing that the US government takes a strong protectionist stance, aiming to protect its companies and industries and address employment problems, Wang told the Global Times on Wednesday.

"The US is not taking an open attitude toward foreign investment; instead, its move is quite conservative and goes against globalization," noted Wang.

Zhang Jiayuan, a partner at the Beijing-based Ransenhuizhi Investment Fund Management Co, told the Global Times Wednesday that the US often regards China as its "imaginary enemy" in the defense industry and foreign companies should take such political pressure into consideration when doing business with Chinese companies.

Zhang noted that the response from the US commission had been expected, and whether the US intervention becomes a turning point for the takeover needs further observation.

Also last week, more than two dozen US lawmakers signed a letter requesting US Treasury Secretary Steven Mnuchin to reject the proposed sale of US aluminum product maker Aleris Corp to China's Zhongwang USA, calling it a "strategic misstep," Reuters reported Saturday.

Zhongwang USA told the Global Times that the acquisition aims to expand its position in the international market and achieve business complementarities.

Wang noted that "with more and more domestic companies going global, Chinese firms must adapt to such tough situations, which will become the norm."

"Chinese companies should be cautious and learn local laws and rules before they prepare to seek growth in the global markets," he said.