Lenovo Deal Might Pose A Threat to US Security

According to Bloomberg
“IBM’s proposed $1.25 billion sale of its personal computer business to
Lenovo Group of China may be held up by U.S. regulators over national
security concerns”. When big takeovers are involved a whole chain of
U.S. regulatory approvals is need before the deal can be effectuated.
Currently the Committee on Foreign Investments in the United States, or
CFIUS, is making up it’s mind about whether or not the deal poses a
threat. One of the concerns is that Lenovo employees might conduct
industrial espionage.

This may create an interesting political situation. If the
Commitee doesn’t approve before the 29 th of January, another
investigation into the deal must be opened. The only person then to say
Yes or No will be mister Bush himself. The takeover is seen in the
mainland as proof of Chinese development and it’s increasing role in
international business. A lot of face can be lost here.

More sources:


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