• Submit Story
  • Gallery
  • Members
  • Browse by Category
  • Videos
  • Top Rated Articles
  • News RSS Feeds
  • China approves Lenovo's purchase of IBM's x86 server business
    China approves Lenovo's purchase of IBM's x86 server business Frontier
    Frontier on Friday, July 4, 2014
    reviews [0]
    Technology [328]
    CHINESE AUTHORITIES have approved the proposed takeover of IBM's x86 server division by Lenovo, six months after the deal was announced.

    Governments on both sides of the deal have viewed the $3.2bn acquisition with suspicion because of perceived security risks involving the potential for espionage.

    While the Chinese approval clears a significant hurdle for the deal, there are still more obstacles to come as US regulators continue to consider the deal, which might take the rest of the year as the Committee on Foreign Investment in the US (CFIUS) examines potential implications for critical US government technology infrastructure.

    Similar investigations were undertaken when other Chinese technology companies such as ZTE and Huawei first attempted to increase their presence in western markets.

    Approval of the Lenovo deal on the Chinese side might spark further suspicions in the US. In May, Chinese government officials started pushing banks to replace IBM servers with locally produced ones and last year prohibited Lenovo from supplying servers to western intelligence organisations.

    Approval of the deal could therefore be viewed as a sign that the Chinese government might have realised that it has an opportunity to use Lenovo's IBM servers to spy on key American interests such as defence systems and financial infrastructure.

    Chinese paranoia about western technology stretches beyond IBM. The country's officials recently banned Microsoft's Windows 8 operating system from government departments, claiming that it steals data, with Chinese state television reporting, "Whoever controls the operating system can control all the data on the computers using it."

    Or perhaps everyone is just being a bit paranoid.
    » Not yet reviewed by any member. You can be the first one to write a review.
    » You must be logged in to post a comment.

    D S E

    View Office : The Daily Frontier in a larger map
    Related Articles
    China today warned Japan that its decision to purchase disputed islands in the East China Sea would damage the bilateral trade between the two countries. Japan's move to.... Blackberry has started process for setting up server in Bangladesh, as the Canadian mobile giant has finally agreed to comply with the country's regulator decision, said.... A new low cost Chinese carrier has signed an agreement with Boeing to purchase 50 aircraft worth over $6 billion, the largest ever deal made by a private airline in China..... The BBC fell victim to a cyber attack on Christmas Day after a Russian hacker reportedly infiltrated a computer server and then tried to sell access to the broadcaster's.... China's legislature approved revisions Wednesday to a key criminal law that at least on paper will restrict police powers to secretly detain people, a tactic increasingly used....
    Adsense II [728 x 90]