US Government May Not Approve Sale of IBM PC Unit

andy1307 writes "Xinhua, among others, quotes a Bloomberg report saying the Committee on Foreign Investments in the United States, or CFIUS, might block the sale of IBM's PC unit to Lenovo over national security concerns. CFIUS is made up of 11 U.S. agencies, including the Department of Justice, the Department of Homeland Security, and is chaired by the Treasury Department. They are concerned Lenovo employees might be used to conduct industrial espionage. The Bloomberg story said members of CFIUS were focusing their attention on an IBM facility in North Carolina of the United States. The same article says IBM hasn't produced its own PCs for several years and that the bulk of its production is done by manufacturing partners, largely in China. In the past, CFIUS has blocked the sale of Global crossing to Hutchison Whampoa because it would have meant Chinese control of the undersea cable communication network."

Re:What is the difference

[jerichohol]

This is a sale of a loss making business so you dont have to take the blame.

Outsourcing is where you let someone else do the dirty work but you take the blame.

So yes there is a difference.

BTW if you own IBM PC's instead of learning Hindi, Mandarin is the way to go

Topic rang an ancient bell...

[shanen]

[One of the key figures is already missing...]

George B.: Condi! Nice to see you. What's happening?
Condie R.: Sir, I have the report here about the new leader of China.
George B.: Great. Lay it on me.
Condie R.: Hu is the new leader of China.
George B.: That's what I want to know.
Condie R.: That's what I'm telling you.
George B.: That's what I'm asking you. Who is the new leader of China?
Condie R.: Yes.
George B.: I mean the fellow's name.
Condie R.: Hu.
George B.: The guy in China.
Condie R.: Hu.
George B.: The new leader of China.
Condie R.: Hu.
George B.: The Chinaman!
Condie R.: Hu is leading China.
George B.: Now whaddya' asking me for?
Condie R.: I'm not asking you, I'm telling you. Hu is leading China.
George B.: Well, I'm asking you. Who is leading China?
Condie R.: That's the man's name.
George B.: That's who's name?
Condie R.: Yes.
George B.: Will you or will you not tell me the name of the new leader of China?
Condie R.: Yes, sir.
George B.: Yassir? Yassir Arafat is in China? I thought he was in the Middle East.
Condie R.: That's right.
George B.: But Yassir's a leftie. Then who is in China?
Condie R.: Yes, sir.
George B.: Yassir is in China?
Condie R.: No, sir.
George B.: Then who is?
Condie R.: Yes, sir.
George B.: Yassir?
Condie R.: No, sir.
George B.: Look, Condi. I need to know the name of the new leader of China. Get me the Secretary General of the U.N. on the phone.
Condie R.: Kofi?
George B.: No, thanks.
Condie R.: You want Kofi?
George B.: No.
Condie R.: You don't want Kofi.
George B.: No. But now that you mention it, I could use a glass of milk. And then get me the U.N.
Condie R.: Yes, sir.
George B.: Not Yassir! The guy at the U.N.
Condie R.: Kofi?
George B.: Milk! Will you please make the call?
Condie R.: And call who?
George B.: Who is the guy at the U.N?
Condie R.: Hu is the guy in China.
George B.: Will you stay out of China?!
Condie R.: Yes, sir.
George B.: And stay out of the Middle East! Just get me the guy at the U.N.
Condie R.: Kofi.
George B.: All right! With cream and two sugars. Now get on the phone.
Condie R. (into phone): Rice, here.
George B.: Rice? Good idea. And a couple of egg rolls, too. Maybe we should send some to the guy in China. And the Middle East.

[With apologies to Abbott and Costello--"Who's on First?"]

Totally

[t_allardyce]

Frankly im outraged, I think everyone here needs to write to their congressman or something. Also I have absolutely no idea what the story is about, thats the most confusing paragraph ive ever read. IBM PC's are national secuirty risks? Blocking sales? Something about communist China? I wish the government was this concerned with oil company ownership.

Gee, can't even come up with a decent reason

[2Bits]

I mean, all these smart people in all those 11 agencies, and still couldn't come up with a decent reason to block the deal?

If I were to do industrial espionage, why would I buy a PC unit? There's not much research in that. I'd go for the chip unit, the mainframe unit, or something. PC unit for espionage? Give me a fucking break. It's just assembly line, mostly, for whatever sake!

National Security Advisor failures?

[ka9dgx]

We get all picky about who owns the undersea cables, but don't give a shit about who controls the systems that allow remote unaudited phone taps [yahoo.com]... typical, just fucking typical.

There was a company that made rare-earth magnets in Valparaiso, Indiana. [findarticles.com] (Necessary for small strong servos in, oh... missles...) That got sold to China...

inconsistent, arbitrary law enforcement breeds contempt.

If we had a compentent National Security Council, none of this would have happened, nor would it have been allowed to be politicized.

--Mike--

The dangerous IBM PC unit

[poot_rootbeer]

IBM PC unit?

Frankly, I don't see how a 25-year-old 8088-based computer would present much of a threat of industrial espionage.

Well, if they added the second 5 1/4" drive and 110 baud acoustic-coupler modem, maybe.