Lenovo Group, which acquired the personal computer business of IBM in 2004, yesterday expressed deep concern about unfair measures taken by the US Congress and administration on a recent contract it won.

In March, Lenovo bid successfully for a US State Department contract to provide 16,000 Lenovo Thinkcentre M51 desktop computers and equipment worth US$13 million through its US distributor CDW Government Inc.

However, under pressure from some members of the US Congress who claimed that the Hong Kong-listed Lenovo is held by the Chinese Government and the procurement of its computers may lead to intelligence leaks, the State Department said last week that it would reallocate 900 of the computers.

They were originally supposed to be deployed in a classified network and will now be used in unclassified networks.

The State Department also said it would revise its procurement process.

"The attitude of the US Government is very unfair to a company like Lenovo, which is totally based on market operations. We are deeply concerned," said Yang Yuanqing, chairman of Lenovo.

After the Chinese company acquired the IBM unit, it had to make several changes, including moving its global headquarters to the United States and building a separate campus.

Also, five American directors sit on its 12-member board.

Last year, Lenovo agreed to produce computers supplied to US government agencies and to ease the worries of information security, promised that the sales and services would be provided by US partners.

Yesterday, the company urged the US administration to provide a fair and level playing ground; and also called for help from the Chinese Government to secure equal treatment in the United States.

Eagle Zhang, general manager of Analysys International, a market consultant, said the State Department's change of the attitude does not change the volume of this contract, but it may set a precedent for other US government agencies or enterprises.

He added that computers are standardized and transparent products; and it is impossible for manufacturers to elicit information from them.

"What is the logic when a product is OK if it is called IBM Thinkcentre; but there are problems if it is called Lenovo Thinkcentre?" he asked.

Also yesterday, the Foreign Ministry expressed hope that the United States eases restrictions on high-tech exports to China.

"We hope the US will abandon its Cold War mentality ... and increasingly relax restrictions on high-tech exports to China and promote bilateral co-operation on trade in high-tech products," spokesman Liu Jianchao said.

(China Daily May 24, 2006)