26 March, 2006

-image-congress vs corporate china

AsiaPundit is not alone in noticing a rise in economic nationalism in the US. Hopefully this will all die down after the election cycle plays out.

China’s Lenovo, the owners of IBM’s personal computer division, are facing the ire of Congress after winning a sizable government contract. Mutant Frog comments.:

The New York Times today is reporting that a number of Congressmembers from both parties are in an uproar over an announcement that Chinese-owned Lenovo computers has won a bid to supply 15,000 machines to the US State

Red IbmThe opposition seems to be a combination of misguided economic nationalism, mixed with a vague but real appreciation of possible security concerns. Surprisingly, this article does not mention the security chip Lenovo has been installing on their domestic models. Now, it would of course be trivial to see whether nor not that chip is installed on the machines being purchased by the State Department, but doing a full-blown security audit would probably be enough trouble so that it would become more economical to just go to the next lowest bidder instead.

The real question is this: are the possibly security concerns serious enough to justify the panic? Supporters of the deal point out that the computers will be used only for unclassified work, but honestly that shouldn’t do anything to relieve you. Most of the government’s paperwork is unclassified, but still not public-think of things like personnel records and so on that would be of great usefulness as intelligence.

Meanwhile, ‘China’s’ Hutchison Whampoa is attracting attention for winning a contract to check cargo shipments for radiation. Milton J Madison comments.:

Hutchison Whampoa, a global leader in the ports business is being paid to install and operate their equipment in the Bahamiam port. Rest assured, however, that as indicated by hyper-partisan Chuck Shumer’s remarks [one of my hometown legislators that used to represent a district in central Brooklyn and is now the senior senator from New York State, and judging from comments that he made in the past in his representitive capacity, is amongst one of the most stupidest and most socialist members of US legislative bodies. Additionally, he along with Senator Graham are sponsoring legislation to slap huge tariffs on Chinese exports to the US in pyrrhic and useless push to preserve low paying manufacturing jobs in the US], that the do nothing Democrats will be using this as another wedge against Bush Administration in this election year.

The way that I look at this, is in fighting against terrorism, their is no silver bullet or perfect defense. But one can attempt to cut down the avenues of attack and work towards the ultimate goal of protecting the American homeland. If a foreign entity is hired to assist in this, and there is no American counterpart that is prepared or equipped to do the job, then foreign operated firms must be hired to do these jobs.

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by @ 10:48 pm. Filed under Asia, China, East Asia, Hong Kong, Northeast Asia, Web/Tech

One Response to “congress vs corporate china”

  1. China Law Blog Says:

    I continue to hope that the ranting and raving currently going on about China is more of an effort to soften up China before President Hu Jintao’s upcoming U.S. trip than a real plan to essentially shut down trade between our two nations. I actually believe nothing major on the trade front will be happening between China and the U.S. within the next six months.

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