The largest computer maker in China, Lenovo has bought IBM’s PC division. So what? This is old news. Recently however certain members of the GOP, namely Ducan Hunter, Henry Hyde, and Don Manzullo (both from IL Alex) have blocked the proposed deal on the grounds that it would expose an American company that deals in government contracts to the Chinese government.

This is quite possible and the review should go forward, but I have serious doubts that IBM deals in any serious military technologies with it PC division. These people make and manufacture commercial use PCs, not military hardware. I fear the real reason this is being blocked is because it looks bad when China is buying the American company that virtually began the Information Age. What does it say when China owns IBM?

Well I can tell you, it’s absolutely awesome, because we are laughing all the way to the bank on this deal and most Chinese don’t even know why. Lenovo is paying way too much for an under performing division that can’t compete with Dell anyway. They are going to lose a pile of money on this deal. IBM meanwhile has acquired (along with a considerable amount of cash) a large stake in Lenovo which they will use to profit from the current China Boom. Make no mistake, it looks bad in the news headlines: “China Buys Symbol of American Capitalism!” But it is ever so sweet if you are in the know: “China Pays too Much for Crappy Company, American Profits Soar!”

If there is a security concern, then it can easily be corrected, but to kill this deal out of China-phobia would hurt America more than it would China.