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.
(China Daily May 24, 2006)
