The Lenovo story began in 1984 when Liu Chuanzhi, a 40-year old engineer at the Computer Sciences Institute of the Chinese Academy of Sciences, founded a computer company in Beijing. With a few colleagues and limited capital, he began selling imported computers. The company, called "Lianxiang" in Chinese and "Legend" in English, had its first success in the development of a Chinese character card that translated English operating software into Chinese characters.


In The Lenovo Affair, Ling Zhijun, a senior editor at the People's Daily newspaper, charts the dramatic rise of Lianxiang/Legend. First it emerged as China's biggest computer brand, then a listed company on the Hong Kong stock exchange. Finally, with the acquisition of IBM's Personal Computing Division, Lenovo became a global brand.

Although Lenovo is the third largest personal computer company in the world, it remains surprisingly unknown outside China. Few people understand how it suddenly became a global giant. This detailed look at one of China's most successful companies provides a rare insider's view into the Chinese economic system.

Ling makes important connections between the historical and political events occurring in China in recent decades. He describes how changes in government policy affected the company's growth, and the moves that Liu Chuanzhi had to make in order to get around problems such as a lack of finance.

Liu, who has been described as "the godfather of China's information industries", is painted as a determined leader. But his road to success was difficult. During the "Cultural Revolution" (1966-76), he developed an unbreakable spirit and the ability to deal with complex human relationships. Ling describes him as a man who knew his own scientific shortcomings, but who wanted to turn technology into profit.

Liu Chuanzhi's greatest challenge was operating within the restraints of the Chinese system. Surprisingly, he came up against many of the same difficulties that foreign companies in China encounter, including the lack of a legal framework for patents, the chaotic system for obtaining import and export licences, and outdated accounting systems.

The Lenovo Affair fills an important gap in our understanding of China's role in the modern business world. In addition, it is a powerful wake-up call for those who just think of China as a huge untapped market for foreign companies. Lenovo's success shows that Chinese companies also aspire to become global players, and that acquisitions are one way for them to gain access to global markets.

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