China's Governance Buy Up

Chinese-owned Lenovo Group's US$1.25 billion purchase of IBM's personal computer business last month is more about China's determination to understand the West's model of corporate governance to make its companies more internationally competition than it is about buying a technology business.

Professor Jean-Christophe Iseux, a Beijing-based Chinese economic expert, thinks commentators have got the significance of Lenovo Group's purchase of IBM's PC business all wrong. "They think it is about China acquiring an immediate five percent slice of the world PC market. It is of course but," according to Iseux, "it is more about China's desire to enhance the management and governance skills of its senior executives and directors."

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