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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."
I thought the US were supposed to be the laissez-faire free marketeers of the world?
If China was blocking US participation in their markets on these grounds, I've little doubt the US would be taking the matter to the WTO (and winning).
>> IBM wants to sell, Lenovo wants to buy. No harm, no foul.
:) ). In those cases, the government is expected and does regulate economic activity in order to re-balance the market.
There is no connection between the first sentence and the second. In order to determine if there is any harm or not, a lot of factors need to be considered, mainly related to whether or not a company will increase what economists call "market power" and will get closer to a monopol status.
>> It's funny, the land of freedom and capitalism is taking steps that would make a communist plutocracy proud.
There is such a term in economy called "market power", which describes companies that have key resources and strategic positions on the market. In those cases, the "invisible hand" of offer and demand, that balances prices on the market, no longer works, because a firm is clearly advantaged compared to the others and in a position to get a monopoly status (Does Microsoft ring any bells?
I'm not saying that this is the case here; however, simply adjusting the balance doesn't mark this approach as communist. Depending on your position on the political spectrum, you might find this implication of government into the market more or less suitable. Still, no matter that, it is still far away from communist.
More likly Microsoft reads slashdot too and is worry about IBM having more power in the linux market in China so Bill called his friends in the White house and Justice department.
Computers are all made in China anyway! We don't build cars in America, we don't grow food in America, we don't even do tech support in America, we don't make steel in America, we don't make clothes in America and we're busy moving all our jobs that pay well overseas! When exactly did this kind of behavior become a "national security problem?" instead of good business? I mean I know all those people who used to make textiles in the South all just went right out and got themselves a degree after the mills closed - what, you say they weren't smart enough to do that?
Then WHAT THE HELL is left for them to do when all those jobs are gone except cook meth in their trailers? Or become religious terrorists?
Vote Quimby!
sticking your finger in the leaking dike or singling out a grain of sand from the beach. It's already too late. We have exported a majority of our technology to China already, which of course is being copied, therefore, saving China billions in R and D. America's greed has sold itself out.
Before you flame me, yes, I am a patriotic American, however, I am not blind to what is happening. America is going down the path of Rome. Just give us more bread and circuses. Football is more important than academics. Money is more important than ethics.
[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?"]
Freedom = (Meaningful - Coerced) Choice != (Speech | Beer^2), and sad sock puppets' bad mods avail them naught.