VANCOUVER - Norsat International Inc. (NII.TO), which is subject to a controversial takeover bid from a Chinese firm, says it may accept a better offer from an American investment fund.

The Vancouver technology company says the deal from Privet Fund Management LLC values it at US$67.3 million, which is slightly above the deal proposed by Hytera Communications.

Hytera, which manufactures radio transceivers and radio systems, made its friendly takeover offer last year and received clearance under the Investment Canada Act this month.

But its proposal has sparked a heated political debate over national security risks and the federal government's willingness to approve a Chinese takeover of a Canadian tech company.

Prime Minister Justin Trudeau defended his government Tuesday, saying Canada consulted the U.S., a major customer of Norsat's, before concluding that Hytera's takeover doesn't pose any national security concerns.

Yundong Yang, a spokesman for the Chinese Embassy in Ottawa, says the deal is a normal business transaction and shouldn't become politicized.