Page 23 |
Save page Remove page | Previous | 23 of 62 | Next |
|
small (250x250 max)
medium (500x500 max)
Large (1000x1000 max)
Extra Large
large ( > 500x500)
Full Resolution
All (PDF)
|
This page
All
|
16
feel IBM has now suddenly lost a lot of its cachet,” she says.22
While positive comments emphasized the capitalist bent of Lenovo’s business
and its dedication to excellence, negative comments originated from three issues.
The first issue was that the deal might be abused because of Chinese
government’s sizable stake in Lenovo. Back in 1984, Lenovo’s founders got about
$25,000 in start-up money from the Chinese Academy of Sciences, a government
agency. Chinese holding company Legend Holdings owns 41.3% of Lenovo's
stock and is its biggest shareholder. In turn, the Chinese Academy of Sciences
owns 65% of Legend Holdings and is its largest shareholder.23 The concern is that
Lenovo will pass the technology it gains from IBM to the Chinese government
and possibly, to the military. On the face of it, this concern seems overdone
because PCs are not at the cutting edge of advanced technology, and the U.S.
does not have a monopoly over their manufacture. IBM in any case had already
made them in China before the bid.
The second issue was that national security would be harmed if industrial
espionage were to happen. China could conceivably use the IBM facility in North
Carolina as a base for espionage. It is pointed out that the Chinese government
has a long history of using business and cultural activities as fronts for espionage
of all types. 24 But suggestions that the deal could provide China with
22 Ibid.
23 See Note 11.
24 Wayne Rash. “Suppose IBM-Lenovo Deal Doesn’t Happen,” eWeek (24
January 2005) n.pag.
Object Description
| Title | China's investment in the United States and the public relations implications: A case study of the Lenovo-IBM acquisition |
| Author | Liang, Shuyan |
| Author email | shuyanliang.usc@gmail.com; shuyanli@usc.edu |
| Degree | Master of Arts |
| Document type | Thesis |
| Degree program | Strategic Public Relations |
| School | Annenberg School for Communication |
| Date defended/completed | 2011-04-30 |
| Date submitted | 2011 |
| Restricted until | Unrestricted |
| Date published | 2011-05-04 |
| Advisor (committee chair) | Kotler, Jonathan |
| Advisor (committee member) |
Floto, Jennifer Wang, Jian (Jay) |
| Abstract | This paper discusses Lenovo’s acquisition of IBM’s personal computer division in 2005 as a case in point to explore issues involved in China’ investment in the United States, particularly its public relations implications. It is demonstrated that media coverage underscored the complications and tensions in these supposedly free market activities. This paper presents the manifestation of controversial issues such as state-ownership of businesses, national security, and economic protectionism, as Chinese enterprises invest in the United States through mergers and acquisitions. It provides an account of Lenovo’s communication strategies and gives suggestions to better manage corporate reputation and brand images for Chinese companies that are seeking overseas investment. |
| Keyword | Lenovo; IBM; China; United States; foreign direct investment (FDI); mergers and acquisition (M&A); public relations (PR) |
| Geographic subject (country) | China; USA |
| Coverage date | 2005/2010 |
| Language | English |
| Part of collection | University of Southern California dissertations and theses |
| Publisher (of the original version) | University of Southern California |
| Place of publication (of the original version) | Los Angeles, California |
| Publisher (of the digital version) | University of Southern California. Libraries |
| Provenance | Electronically uploaded by the author |
| Type | texts |
| Legacy record ID | usctheses-m3902 |
| Contributing entity | University of Southern California |
| Rights | Liang, Shuyan |
| Repository name | Libraries, University of Southern California |
| Repository address | Los Angeles, California |
| Repository email | cisadmin@lib.usc.edu |
| Filename | etd-Liang-4567 |
| Archival file | uscthesesreloadpub_Volume32/etd-Liang-4567.pdf |
Description
| Title | Page 23 |
| Contributing entity | University of Southern California |
| Repository email | cisadmin@lib.usc.edu |
| Full text | 16 feel IBM has now suddenly lost a lot of its cachet,” she says.22 While positive comments emphasized the capitalist bent of Lenovo’s business and its dedication to excellence, negative comments originated from three issues. The first issue was that the deal might be abused because of Chinese government’s sizable stake in Lenovo. Back in 1984, Lenovo’s founders got about $25,000 in start-up money from the Chinese Academy of Sciences, a government agency. Chinese holding company Legend Holdings owns 41.3% of Lenovo's stock and is its biggest shareholder. In turn, the Chinese Academy of Sciences owns 65% of Legend Holdings and is its largest shareholder.23 The concern is that Lenovo will pass the technology it gains from IBM to the Chinese government and possibly, to the military. On the face of it, this concern seems overdone because PCs are not at the cutting edge of advanced technology, and the U.S. does not have a monopoly over their manufacture. IBM in any case had already made them in China before the bid. The second issue was that national security would be harmed if industrial espionage were to happen. China could conceivably use the IBM facility in North Carolina as a base for espionage. It is pointed out that the Chinese government has a long history of using business and cultural activities as fronts for espionage of all types. 24 But suggestions that the deal could provide China with 22 Ibid. 23 See Note 11. 24 Wayne Rash. “Suppose IBM-Lenovo Deal Doesn’t Happen,” eWeek (24 January 2005) n.pag. |
