US begins review of IBM-Lenovo deal

The US government opened a national security review of IBM's plans to sell its PC business to China's Lenovo Group of China after the companies failed to win clearance during an initial review. The investigation conducted by the Committee on Foreign Investment in the United States is expected to last 45 days investigation and will focus on potential risks to national security posed by the US$1.25bn sale. The review involves various government departments, including the Department of Justice and Department of Homeland Security. Officials have expressed concern that Chinese agents might use a US-based IBM research facility to engage in industrial espionage, and worries about Lenovo's access to details of US government use of IBM technology.