US computer giant Dell Inc. is currently at the center of a
public relations shenanigan that could damage its relations with
its competitor, Lenovo, and the Chinese government. Dell had some
fire fighting to do yesterday after one of its employees remarked
that Lenovo's acquisition of IBM's PC arm was "directly
supporting/funding the Chinese government."
In a statement released yesterday, Dell China expressed regret
about the employee's remark, and said that it "in no way"
represented the position of the company.
Dell added that it would take appropriate action against the
employee, and that such matters are taken very seriously.
In an e-mail to a customer on May 27, a Dell account manager -
identified only as Chris - said: "From an IBM perspective, please
do not think I'm throwing stones."
He went on to say that Lenovo, which IBM's personal computer
unit in December, was a Chinese government-owned company and every
dollar spent on IBM's computers was "directly supporting/funding
the Chinese government."
Late on Monday, Lenovo issued a written statement expressing
deep regret over these comments.
The statement said that a leading company like Dell should
adhere to business ethics and respect national governments and
enterprises.
Dai Linyan, a spokeswoman from Lenovo, said yesterday that her
company would be closely watching developments, but did not say if
the company would demand a formal apology from Dell or take other
action.
Earlier in February, another Lenovo competitor, HP, published an
advertisement in a Taiwan newspaper that read: "Don't even mention
Lenovo." HP later apologized.
Fang Xingdong, a well-known industry observer in Beijing, said
Dell's strategy of mixing competition with politics could
potentially bring huge losses to the Chinese firm. He even
suggested the government consult with Dell on the situation.
Wang Zhile, a senior multinational corporation development
expert with a Ministry of
Commerce research institute, said it was important to first
ascertain if the comments reflected the views of Dell or were the
opinions of a single member of staff. He warned that any
nationalism inspired by the controversy could harm the economic
cooperation between the two countries.
(China Daily June 1, 2005)