US government clears China for big deal with IBM

March 9, 2005      (Page 3 of 4)

"We had an opportunity to meet with leaders in virtually every executive part of the government--senators, congresspeople--they really, really listened to the strategy of the company," Ward told CNET News.com. "It's just a matter of this was the first big thing (in terms of a major U.S. technology company merging with a foreign company) and people want to understand it."

One analyst said it was important for the policymakers to recognize the difference between cutting-edge research into computing technology and the commodity status of desktop and notebook PCs, which are based largely on standard parts and software.

"All the potentially spooky material lies with the other side of the house--the big iron and any kind of 'secret sauce' IBM has," said Roger Kay, an analyst at IDC. "Anything the PC group does is basically industry-standard."

Lenovo plans to take over the daily operations of IBM's PC business and would also be able to use IBM PC brands such as ThinkPad for five years. IBM will use its sales force to help sell Lenovo PCs and provide support for them.

The deal also says something about the global nature of businesses, Kay added. "It's the flip side of the Stringer taking over Sony kind of thing. It's just part of globalization, and people should get used to it."

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