BIZCHINA / Top Biz News
Lenovo: US measures are unfair
By Liu Baijia (China Daily)
Updated: 2006-05-24 08:38
Lenovo Group, which acquired the personal computer business of IBM in
2004, yesterday expressed deep concern about unfair measures taken by the
US Congress and administration on a recent contract it won.
In March, Lenovo bid successfully for a US State Department contract to
provide 16,000 Lenovo Thinkcentre M51 desktop computers and equipment
worth US$13 million through its US distributor CDW Government Inc.
However, under pressure from some members of the US Congress who claimed
that the Hong Kong-listed Lenovo is held by the Chinese Government and
the procurement of its computers may lead to intelligence leaks, the
State Department said last week that it would reallocate 900 of the
computers.
They were originally supposed to be deployed in a classified network and
will now be used in unclassified networks.
The State Department also said it would revise its procurement process.
"The attitude of the US Government is very unfair to a company like
Lenovo, which is totally based on market operations. We are deeply
concerned," said Yang Yuanqing, chairman of Lenovo.
After the Chinese company acquired the IBM unit, it had to make several
changes, including moving its global headquarters to the United States
and building a separate campus.
Also, five American directors sit on its 12-member board.
Last year, Lenovo agreed to produce computers supplied to US government
agencies and to ease the worries of information security, promised that
the sales and services would be provided by US partners.
Yesterday, the company urged the US administration to provide a fair and
level playing ground; and also called for help from the Chinese
Government to secure equal treatment in the United States.
Eagle Zhang, general manager of Analysys International, a market
consultant, said the State Department's change of the attitude does not
change the volume of this contract, but it may set a precedent for other
US government agencies or enterprises.
He added that computers are standardized and transparent products; and it
is impossible for manufacturers to elicit information from them.
"What is the logic when a product is OK if it is called IBM Thinkcentre;
but there are problems if it is called Lenovo Thinkcentre?" he asked.
Also yesterday, the Foreign Ministry expressed hope that the United
States eases restrictions on high-tech exports to China.
"We hope the US will abandon its Cold War mentality ... and increasingly
relax restrictions on high-tech exports to China and promote bilateral
co-operation on trade in high-tech products," spokesman Liu Jianchao said.
(For more biz stories, please visit Industry Updates)
Most Popular Stories in 48 Hours
� Cities may alleviate housing woes
� Rural labor shortage beginning to be felt
� Xie Qihua: Made of Steel
� ICBC to open subsidiary in Moscow
� Good news in desertification control
Today's Top News
� Russia, China close ranks in Central Asia
� China emerging from shadows of AIDS
� Court hears last appeal for fugitive Lai
� Taiwan's 'security report' hurts peace
� Yangtze river 'cancerous' with pollution
Top Biz News
� Carrefour keeps pace with expansion
� In real-estate market, small now beautiful
� New moves to steer car sector stability
� Water consumption for per unit of GDP to drop 30%
� China, Japan start forum on energy saving cooperation
Alibaba is the largest B2B marketplace in the world. Source model ship,
wooden puzzle, one-piece toilet, RC hovercraft, photo album, prom dress,
pocket bike, Vaginal Speculum, Samurai Sword, String Panty and PVC Pipe.
Chinese School
