Lenovo has so far reneged on all the restrictions CFIUS imposed. They were supposed to move their HQ from N.C. to N.Y. because of the proximity to IBM's research park. About two months ago, they did the opposite. They moved everything from N.Y. to N.C. and are building additional facilities near the research park. Even more shocking, some of the buildings they now occupy, are not secured from the research facilities themselves.
They were also banned from selling any computers to the U.S. Government. That was holding until the State Dept. ordered thousands of desktops from CDW and somehow Lenovo was picked. I have not seen it published anywhere in regards to the source of the order or the parameters. But it would seem odd that the State. Dept. would just call up CDW and say, hey we need a bunch of new comps over here, just bring us what you got. I'd go out on a limb and say that someone specifically ordered Lenovos for someone's agenda. Maybe to incite this incident, maybe the Chinese trying to get listening devices inside the State Dept.
Some details on the CFIUS review…
The concessions include preventing Lenovo from knowing the names of IBM's US government customers, physically sealing off buildings in a shared office park and moving thousands of employees to other locations.
…
It is understood that this sparked concern among members of the committee from the Department of Homeland Security and the Justice Department, who demanded that IBM protect any information the Chinese could use to bug or infiltrate computers used by US officials. IBM baulked at other demands, including a requirement that it not transfer any employees involved in research and development to the Research Triangle site. It also objected to some security measures, such as installing new safety doors.
…
IBM has hired consultants to help secure approval from CFIUS, including Brent Scowcroft, the national security adviser to former presidents George Bush (snr) and Gerald Ford. The company also retained Bruce Mehlman, who served as the current president's assistant secretary for technology policy at the Department of Commerce until January last year, and partners at law firm Covington&Burling. These include Mark Plotkin and David Marchick, a former deputy assistant secretary for trade policy at the State Department, according to federal lobbying records.
http://afr.com/articles/2005/02/28/1109546795065.htmlIBM's deal to sell off its PC unit to China-based Lenovo may hit a snag, as U.S. federal agencies decide whether the arrangement endangers national security.
As part of the US$1.75 billion deal, Lenovo announced that it would send a cadre of Chinese computer experts and researchers to IBM's North Carolina facility.
The plan has prompted some members of the Committee on Foreign Investments in the United States (CFIUS) to voice concern about whether the researchers would be able to engage in industrial espionage while working in the U.S.
http://www.newsfactor.com/story.xhtml?story_title=IBM-s-Lenovo-Deal-Faces-U-S--Security-Probe&story_id=29970This is another deal where CFIUS had received serious concerns from the intelligence community to prompt an extended review. So how much espionage is China currently executing or preparing for? IMHO, they’re doing everything they possibly can.
Lets be clear. CFIUS and Bush allowed the Chinese government to buy a majority share of one of the most renowned U.S. corporations, who just happens to build computers that could be sold to agencies within the U.S. Government and operates a world class research center that could be easily compromised.
And then there’s this headline from yesterday.. “China broadens espionage operations”
http://www.usatoday.com/news/washington
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