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Lenovo chief rejects US security risks fears

by Staff Writers
Shanghai (AFP) May 24, 2006
Lenovo Group chairman Yang Yuanqing has branded a US government decision not to use his firm's computers over security concerns as unfair and deeply concerning, state press reported Wednesday.

"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," the China Daily quote Yang as saying.

"Our products comply with CFIUS (Committee on Foreign Investments in the United States) and all suppliers' requirements," the Shanghai Daily, another state newspaper, quoted Yang as saying.

Yang's comments came in response to the US State Department's decision last week to pull the plug on a controversial decision to install 16,000 computers made by Lenovo, a Chinese company, on its classified networks.

The State Department bowed to angry objections from the US-China Economic and Security Review Commission, a bipartisan panel of experts appointed by Congress, to review the deal that was signed in March.

In 2004, Lenonvo acquired the personal computer business of IBM for 1.75 billion dollars, in what was then the largest buyout on an overseas concern by a mainland Chinese firm.

The takeover was cleared by Washington despite objections from members of Congress about Lenovo being owned by Legend Holdings, which in turn is majority-owned by the state Chinese Academy of Sciences.

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