Monday, 6 December 2004

China's expanding influence

Rumours of a tie-up between China's no. 1 PC maker Lenovo and IBM have just become more concrete, with reports of the former acquiring the latter's PC business.

Lenovo suspended amid reports on IBM PC sale
Shares of Lenovo were suspended Monday morning amid reports that China’s biggest computer maker is in talks to acquire International Business Machines's PC operations... People familiar with IBM said last week the US information technology group planned to sell the bulk of its PC business, while analysts have said Lenovo was the most likely buyer.

IBM and Lenovo had both declined to comment on the sale, but such an acquisition would mark a dramatic expansion of overseas clout for the Chinese company... That such a sale can even be considered underlines the growth in global ambitions of leading Chinese companies...

Indeed, China's influence on world business is getting to the stage where everybody else has an interest in what happens in the country and the policies being pursued by the government.

Key economic policies mapped out for 2005
Further macro control and restructuring will top China's economic agenda next year, the Central Economic Conference decided Sunday. Other major tasks for 2005 include promoting rural development, economic reform, further opening to the outside world and social harmony. The goal is to "maintain steady and relatively fast economic growth with more emphasis on quality and efficiency," the three-day conference concluded...

I discuss China's influence further in "The impact of China on the world economy".

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