Posted on 03/30/2006 9:33:57 AM PST by Salo
The USCC launched a probe against Lenovo, but many wonder if the accusations are warranted
The United States government is planning to spend roughly $13M USD on computers from Lenovo. The company, famous for buying up IBM's PC manufacturing arm, is working on a deal with the US government to produce roughly 16,000 computers. Just recently, the U.S.-China Economic Security Review Commission (USCC) has requested that Lenovo be probed for any concerns about possible spying, eavesdropping or worse.
The supposed problem presented by the USCC is that the 16,000 computers are being built by a Chinese-mainland company. The USCC argues that a foreign intelligence like that of the Communist Party of China (CPC) can use its power to get Lenovo to equip its machines with espionage devices. Lenovo has strongly declined that it is involved in any such activities.
Many analysts would call these probes are excessive and knee-jerk. When manufactured under IBM, almost all Lenovo PCs were built in the People's Republic of China and the Republic of China (Taiwan) to some degree or another anyway. Of the top 10 system builders in the US, eight have some component manufacture attributed specifically to ECS-Tatung, at Taiwanese corporation that only assembles exclusively in the PRC. Of the other two not represented by ECS-Tatung, Dell and Apple, Dell has a strong reliance on ASUStek -- another company that builds exclusively in the PRC.
Despite the probe, Lenovo says that its international business, especially those that deal with the US, follow strictly laid out government regulations and rules. Lenovo also claims that even after purchasing IBM's PC division, its international business has not been affected negatively. Interestingly, in an interview with the BBC, Lenovo mentioned that an open investigation or probe may negatively affect the way that the company deals with future government contracts or bids. The Lenovo representative did not explain details on exactly what negative implications would occur if there were future investigations. The 16,000 PCs to be built for the US government are actually assembled outside of China in Mexico, Taiwan and Raleigh -- an oddity in the PC manufacturing business.
A top tier motherboard manufacturer spokesman spoke to us off the record claiming the Lenovo probe has "foreboding" implications. If US companies are intimidated by probes of the USCC, such probes could be easily applied to virtually every PC manufacturer in the US: Intel motherboards are built by Taiwanese Hon Hai Precision Industries from facilities in Shenzhen; Acer components are built by component manufacturers in Shanghai; Dell PCs are assembled in factories in Suzhou and Shanghai. The same spokesperson went on to say "We [Taiwanese manufactures] do more work in China than we do anywhere else in the world. I don't even want to think about what would happen to our US clients if we got a USCC probe."
CDW Government, the company originally contracted to fill the orders for the US government also carries several brands that are assembled in the PRC including Acer, BenQ, D-Link, HP, Sharp and Toshiba.
This knee-jerk hysteria post Dubai ought to be embarrassing to the government, and to those who are infected with it at FR, but apparently it's not.
National Security should never be outsourced, those that think it should are equal if not worse than Bill Clinton's commerce department.
Computer manufacturing is not national security.
No, they hire contract manufacturers just like everybody else.
For instance, IBM is no longer considered a manufacturer; they consider themselves a service provider.
--Jack Healy, Director, Manufacturing Advancement Center
For the trillionth time, DHS provides security at ports. The fallout from stabbing UAE in the back over the ports will be trickling out for some time. Qatar just put on hold a huge 787 order from Boeing, saying they were taking another look at Airbus.
Idiots like Duncan Hunter and IRA-loving Peter King don't deserve to re-elected after their shameful grandstanding during the Dubai deal.
That is not true. IBM makes all the chips it uses.
For instance, IBM is no longer considered a manufacturer; they consider themselves a service provider.
That's because IBM derives more revenue from its Global Services group than from manufacturing. But it still manufactures all its Z and I series main and mid frames, and still rolls out raised-floor printers and specialized hardware (point-of-sale systems).
No worries, the ChiComms are your friends! (PUKE)
Yasu, Japan, Altis Semiconductor Corbeil-Essonnes France, Chartered, Singapore.
IBM does license its technology, but it only uses chips that it makes in its hardware.
See #33 re: licensing technology.
Who made the chips in your computer?
A friend of mine near San Jose.
Sounds like you have the one computer around that has no parts made in China.
It is when those computers end up in the state department. DUH.
Why even risk it? So the Chicom goverment can make a profit?
So that puts you firmly in that 18 percent of Americans that wanted it to go through. No wonder you lost so quickly and decisively.
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