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29
where the components are produced and how the machines are assembled. Liu
Chuanzhi, the Lenovo chairman, told Reuters that the company gave up access
to the names of IBM’s U.S. government clients to win the clearance.
“The lesson from the IBM experience is that the government is going to be
difficult on them all,” said William Reinsch, president of the National Foreign
Trade Council and a former trade official in the Clinton administration.47
In his article “Deal-Breaker: FDI, CFIUS, and Congressional Response to State
Ownership of Foreign Firms,” Rahul Prabhaker argues that state ownership of a
given foreign firm seeking to acquire a U.S. firm significantly heightens the
likelihood of a CFIUS review. Even if the transaction is approved, it will be
blocked through political pressure or the foreign bidder will withdraw the bid.
Thus, CFIUS is considered a “deal breaker.”48
In 2005, there were 65 CFIUS notifications submitted, but there were only two
investigations. The CNOOC-Unocal acquisition was one of the two. This deal
was selected as one of the “Breakthrough Energy Deals” for 2005 by Investment
Dealers’ Digest (Jan. 16, 2006).49Although CNOOC outbid Chevron, the proposed
acquisition of Unocal by CNOOC was doomed due to state ownership. The
47 Ibid.
48 Rahul Prabhakar, “Deal-Breaker: FDI, CFIUS, and Congressional Response to
State Ownership of Foreign Firms,” 13 May 2009, retrived 1 April 2011
<http://ssrn.com/abstract=1420790>.
49 “CFIUS,” Skadden, retrieved 1 April 2011
<http://www.skadden.com/Index.cfm?contentID=47&practiceID=101&foc
usID=1>.
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 36 |
| Contributing entity | University of Southern California |
| Repository email | cisadmin@lib.usc.edu |
| Full text |
29
where the components are produced and how the machines are assembled. Liu
Chuanzhi, the Lenovo chairman, told Reuters that the company gave up access
to the names of IBM’s U.S. government clients to win the clearance.
“The lesson from the IBM experience is that the government is going to be
difficult on them all,” said William Reinsch, president of the National Foreign
Trade Council and a former trade official in the Clinton administration.47
In his article “Deal-Breaker: FDI, CFIUS, and Congressional Response to State
Ownership of Foreign Firms,” Rahul Prabhaker argues that state ownership of a
given foreign firm seeking to acquire a U.S. firm significantly heightens the
likelihood of a CFIUS review. Even if the transaction is approved, it will be
blocked through political pressure or the foreign bidder will withdraw the bid.
Thus, CFIUS is considered a “deal breaker.”48
In 2005, there were 65 CFIUS notifications submitted, but there were only two
investigations. The CNOOC-Unocal acquisition was one of the two. This deal
was selected as one of the “Breakthrough Energy Deals” for 2005 by Investment
Dealers’ Digest (Jan. 16, 2006).49Although CNOOC outbid Chevron, the proposed
acquisition of Unocal by CNOOC was doomed due to state ownership. The
47 Ibid.
48 Rahul Prabhakar, “Deal-Breaker: FDI, CFIUS, and Congressional Response to
State Ownership of Foreign Firms,” 13 May 2009, retrived 1 April 2011
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