Bottom line: China and the west should sign an agreement for telecoms networking equipment trade that creates a transparent and fair playing field for fair trade while protecting national security.
Transparency needed in global telecoms trade
A simmering national security standoff between China and the west involving telecoms networks could soon heat up again, with word that China Telecom, the smallest of China’s 3 state-run carriers, is preparing a bid to build a new wireless network in Mexico. Analysts say the US might object to such a Chinese-run network so close to its borders, fearing it could contain backdoors and other hidden features that might accommodate spying by Beijing.
Similar previous concerns have locked Chinese telecoms equipment makers out of the lucrative US market, and cost leading manufacturer Huawei a chance to help build a cutting-edge broadband network in Australia. Read Full Post…
Bottom line: Lenovo’s branding relaunch set for April could see it retire some of its local brands obtained through recent acquisitions, helping to improve its sales through better consumer awareness.
Lenovo prepares for brand overhaul
PC maker Lenovo (HKEx: 992) is hinting at a major overhaul for its crowded stable of brands later this year, in a move to simplify the many names it has acquired in a buying spree over the last decade. This kind of move is long overdue for Lenovo, which launched its global buying binge a decade ago with a landmark deal to buy the PC business of IBM (NYSE: IBM). To this day Lenovo still counts the Think name it got from IBM as one of its leading PC brands, though it has also added a number of other major names over the last 10 years. Read Full Post…
Two scandals in China’s tech world were hot topics in the microblogging realm this past week, drawing heated discussion on allegations of copycatting and other unethical business behavior at smartphone sensation Xiaomi and newly listed social networking app maker Momo (Nasdaq: MOMO). The debate reflected the wide range of views on the many dubious business practices like intellectual property theft and violation of business contracts that are a regular feature in China’s corporate business landscape.
In less controversial chatter, computing giant Lenovo (HKEx: 992) was also tooting its own horn loud and clear as it celebrated the 10th anniversary of its landmark purchase of IBM’s (NYSE: IBM) PC business. As a long-time China tech writer it was hard for me to believe that historic deal is already a decade in the past, and it certainly kicked off a drive that would propel Lenovo to become the world’s biggest PC brand. Read Full Post…
After months of hostile exchanges, accusations and negative publicity, the tone in a series of disputes between Chinese and foreign companies and governments abruptly shifted late last week with new signs of conciliation from both the foreign companies and Chinese government. One case involved leading global smartphone chip maker Qualcomm (Nasdaq: QCOM) , which is being probed by Beijing for anti-competitive behavior. The other involved computing giant IBM (NYSE: IBM), whose hardware could soon be shunned by many state-owned banks after Beijing warned of national security concerns earlier this year. Read Full Post…
The following press releases and media reports about Chinese companies were carried on August 23-25. To view a full article or story, click on the link next to the headline.
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Regulator Says Qualcomm (Nasdaq: QCOM) Seeks To End Anti-Trust Probe (English article)
US Game Designer Ouya Scores Xiaomi Partnership To Take Games To China (English article)
Apple promises to safeguard data on Chinese servers
Apple (Nasdaq: AAPL) has emerged as a rare voice of reason in the war of words between China and the west over cyber security, with word that the global tech giant has decided to host some of its users’ personal data on Chinese-based computers. Apple’s move was almost surely a business decision first and foremost, providing its Chinese users with speedier services. But the move also sends a signal that other western companies should consider following, reflecting Apple’s belief that using Chinese infrastructure doesn’t pose a risk to compromising a company’s private data. Read Full Post…
A summer full of negative news for Sino-foreign trade relations got a rare piece of positive news over the weekend, with word that the US has approved the sale of IBM’s (NYSE: IBM) low-end server business to Chinese PC giant Lenovo (HKEx: 992). The case looks a bit like another deal between the pair of tech giants nearly a decade ago, when IBM agreed to sell its high-profile PC business to Lenovo, only to see the deal run into political headwinds before finally getting approved by Washington. But this latest approval is slightly different, as it comes against a backdrop of heightened trade and other national security tensions between China and the west, especially from the US. Read Full Post…
The following press releases and media reports about Chinese companies were carried on August 16-18. To view a full article or story, click on the link next to the headline.
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US Approves Sale Of IBM (NYSE: IBM) x86 Server Unit To Lenovo (HKEx: 992) (Businesswire)
Apple (Nasdaq: AAPL) Begins Storing Users’ Personal Data On Servers In China (English article)
Update: Since originally writing this post, several reports have appeared saying Apple’s name wasn’t included on the latest government procurement list because it failed to submit the necessary paperwork.
I really didn’t want to write again about another major multinational getting bashed in China, but it seems hard to ignore the latest reports that gadget giant Apple (Nasdaq: AAPL) has formally joined the list of companies being banned from selling to the government due to national security concerns. At this rate, Chinese government agencies won’t be able to buy technology products from any foreign companies soon, and will be forced to do all their buying from domestic firms. That’s somewhat ironic, since many of those domestic firms are far less experienced than big global names like Apple and Microsoft (Nasdaq: MSFT), and thus are far more likely to unknowingly design products with major security flaws. Read Full Post…
Beijing’s recent campaign against foreign tech firms is picking up more momentum, with word that security software makers Symantec (Nasdaq: SYMC) and Kaspersky Lab have been banned from selling to government agencies. The move continues a trend that has seen Beijing take similar moves against software from Microsoft (Nasdaq: MSFT) and hardware from IBM (NYSE: IBM) over worries that their products could compromise national security.
Meantime in another ominous sign for foreign tech firms, a government ministry that conducts anti-monopoly investigations is warning Microsoft not to interfere with its ongoing probe of the company. Industry watchers will note that the warning from the State Administration of Industry and Commerce (SAIC) comes as an unrelated trial gets set to start for a British-American couple being charged with interfering in a bribery probe into British drug giant GlaxoSmithKline (London: GSK). Read Full Post…
PC giant Lenovo (HKEx: 992) has never been a company to sit still for very long, which is both a positive and negative trait, as it announces yet another new foray into the smart devices sector. The company’s inability to be satisfied with the status quo has helped propel it to the world’s top PC maker through a series of acquisitions over the last few years, making it one of China’s best known global brands. But that same inability to focus also means Lenovo is constantly venturing into new areas, both for products and geographies. Some of those look good, but many often lead to headaches and disappointment. Read Full Post…
