Senate monitoring of foreign investment came under question after Bain Capital and Huawei Technologies announced withdrawal of their application to have a proposed purchase of the technology company 3Com subjected to federal review, The Hill newspaper reported.
A 3Com division sells security software to the Pentagon, the report said. Huawei Technologies, a Chinese telecommunications company supplier, on the other hand, was begun by a former Chinese military officer.
On balance is the issue of national security versus the ability to attract foreign investments.
"We don't see it as a sign of things to come in terms of chilling investment," Nancy McLernon, vice president of the Organization for International Investment told the newspaper.
On the flip side, Rep. Thaddeus McCotter, R-Mich, was critical of the deal for security reasons. "We must remain even more vigilant to ensure American national security is not for sale; and to stop communist Chinese stealth assaults on our national security," McCotter said in a statement.