HP eyes more govt deals after Tsinghua JV

Hewlett-Packard Co, the United States-based tech giant, said on Friday that it was confident of clinching more government procurement deals in China after setting up a joint venture with Tsinghua University in Beijing.

HP sold 51 percent of the stake in the Hangzhou-based H3C Technologies Co Ltd to Unisplendour Corp Ltd for at least $2.5 billion. Unisplendour is an information technology arm indirectly controlled by Tsinghua University. The new H3C will also include HP's server, storage and service units in China.

It is the first time that a major US tech firm has ceded control of a fully-owned subsidiary to a local player to win government-backed deals in China, where concerns over information security have kept most of the overseas providers out of the game.