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RE: "China has little experience in managing a free economy."

Thank you for the informative post about "disruptive technology."

About your "free economy" comment. I believe that is is true that we do not recognize China as a free market economy.

Also Lenovo, like most (all?) major enterprises in Chins, is owned by one government entity or other which are controlled by the Party. That is, the major owners are Chi-com government lackeys of the Chinese Communist Party.

You ask, "What's going to happen when they encounter the inevitable recession, currency crisis, or whatever?"

Ans: another Great Leap onto the backs of tens of millions of their own citizens killing them as has been the wont of Chi-coms for more than fifty years.

Deng's Chi-com version of a new economic plan (NEP) changed nothing about the nature of communism. It only invited useful idiots like IBM managers to transfer their technology to the "people." to start up enterprises beginning years ago. IMO.

Lenovo, founded in 1984 by a group of scholars at the government-backed Chinese Academy of Sciences in Beijing, is China's biggest computer maker and is also the biggest in Asia. Its shares are traded in Hong Kong.

Now for the rest of the story.

Legend Group Holdings, which is controlled by the Chinese government, owns a majority stake in Lenovo. http://biz.yahoo.com/ic/56/56726.html

Gee, I wonder how long it will take the hyphenated groups to get out demanding that Lenovo be permitted to put their own people on contract to finish any defense contracts IBM has for their PC division.