http://www.iht.com/articles/2006/03/23/business/lenovo.phpA U.S. State Department purchase of more than 15,000 computers produced by Lenovo Group, a company controlled by the Chinese government, is starting to draw criticism in the latest sign of American unease about the role of foreign companies in the American economy.
The computers, worth more than $13 million, are coming from factories in Raleigh, North Carolina, and Monterrey, Mexico, that were part of the personal computer division that Lenovo purchased from International Business Machines last May.
Sean McCormack, a State Department spokesman, said at the department's daily media briefing on Wednesday that the computers were intended for unclassified systems and would be serviced by the former IBM division.
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The computer contracts are nonetheless drawing criticism from the diverse group of liberal and conservative critics who have been warning about China's growing power for years. These critics have been encouraged by the congressional scrutiny given to a plan by a company controlled by the royal family of Dubai in the United Arab Emirates to acquire operations at six American ports; the company has since agreed to relinquish those operations.
The critics warn that the computer deal could help China spy on American embassies and intelligence-gathering activities by planting extra hardware and software in the computers.
"The opportunities for intelligence gains by the Chinese are phenomenal," said Michael Wessel, a member of the U.S.-China Economic & Security Review Commission, which was created by Congress to monitor and report on the bilateral relationship.
Lou Dobbs was all over this story earlier this week.