Prudent to file 'loss of state-owned assets' allegations despite public discontent against Lenovo continues
Comment of the Day

November 23 2021

Commentary by Eoin Treacy

Prudent to file 'loss of state-owned assets' allegations despite public discontent against Lenovo continues

This article from the Global Times by Hu Xijin may be of interest. Here is a section:

However, Lenovo actually derailed from the route of trade, industry and technology. Instead of making real efforts to scientific and technological innovation after original accumulation, it gradually withdrew from the front line of national scientific and technological progress, and made fewer contributions to China's core competitiveness. Many people felt that this failed to live up to their expectations on Lenovo as a well-established enterprise.

In particular, it has been eclipsed by tech companies such as Huawei that have suffered from US crackdown, and was not as innovative in patterns compared with emerging companies such as Xiaomi. But Liu and Yang, and their likes still enjoy a high salary of hundreds of millions of yuan in the partially state-owned enterprise. As a result, both the public image of the whole company and their own personal images have become fragile. In fact, doubts emerged a long time ago.

Eoin Treacy's view

Calling out a publicly owned company for its failure to live up to its responsibility to the state’s expectations is a warning shot from the perspective of investors in the share.

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