Bain Capital and its minority Chinese partner, Huawei Technologies, have shelved their $2.2bn deal to acquire 3Com, a US computer networking company, saying a key Washington committee charged with vetting foreign investments in sensitive sectors had told Bain it would not approve the purchase.

The setback to the deal highlights rising protectionist sentiment in the US as both Democrats and Republicans seek to woo an American electorate suspicious of foreign investment and the effects of globalisation on domestic jobs.