Mideast banks that have relationships with U.S. banks were hesitant to release money to the Palestinian Authority, lest they find themselves in the crosshairs of U.S. antiterrorism finance laws.

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Chinese telecommunications companies Huawei and ZTE long have been in the crosshairs of U.S. policymakers.

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As Hyflux's profile grows, the company will increasingly be in the crosshairs of larger rivals, such as France's Suez, Siemens' USFilter and GE.

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