Hewlett-Packard Is Selling a Majority Stake in its Chinese Business

Hewlett Packard (HPQ) is selling a majority stake in its Chinese networking gear business, according to the Wall Street Journal. China's Tsinghua Group plans to announce it will buy a 51% stake in Hewlett-Packard's China networking gear subsidiary. The report says Hewlett-Packard and Tsinghua signed a letter of intent on April 23rd and have been waiting for approval from China's National Development and Reform Commission. The agreed price was not clear, but earlier discussions had valued the entire Hewlett-Packard H3C business at about $5 billion. Hewlett-Packard and other U.S. tech companies have faced a more difficult business environment in China following revelations the U.S. Government used infrastructure belonging to American companies for spying.