The biggest Chinese computer maker Lenovo Group acquired the personal computer unit of the world's largest information technology giant IBM on December 8 at a cost of US$1.75 billion.

The Chinese company, which has aspired to enter international markets for years, will be able to use IBM's strength in branding, technologies, sales networks, and financing worldwide to achieve its dream, while the US giant spins off its non-core business and builds a closer partnership with a company from China. It is believed to be a perfect match by IBM China Chairman and CEO Henry Chow because of international influences and China's manufacturing strength.

The combination of their sales in 2003 will make the new Lenovo the third largest computer maker in the world and put it in reach of the top Fortune 500 companies.

The deal is another major ambition of Chinese firms on the international stage, after the electronics company TCL took over the TV production lines of French giant Thomson in September and handset manufacturing units of Alcatel this year.

Following the Lenovo-IBM partnership, the union of Chinese companies with global giants reached a new height.

Beijing-based display giant BOE Technology took control of the traditional display units of the Dutch giant Philips on December 16. The biggest Chinese mobile phone maker Bird was also reported to be talking with Siemens about taking over the latter's mobile phone unit.

The tide reflects Chinese companies' ambition to move upwards in the global industrial chain, international giants' choice of teaming up with Chinese counterparts for their manufacturing strength, and finally the closer integration of the Chinese economy with the world.

The acquisition also changed and will continue to change the scenario of the computer industry, not only in China, but also in the world.

Lenovo Group's headquarters will be located in New York, highlighting its ambition in the world. The manufacturing and cost strength of Lenovo will help the company compete with other international giants.

On the other hand, Dell and HP also lowered their prices and began to gain former IBM customers.

Chinese computer makers Founder Technology and Langchao reorganized their companies to get ready for more intense competition, while Tsinghua Unisplendor has already withdrawn from the computer market.

Source: China Daily