He
says that Lenovo’s profit growth will be limited if the company focuses only on
producing hardware.
“There is a niche in developing software that link up computers with mobile phones. This integrated technology, or mobile-computer interface, opens up the chance for manufacturers like Lenovo to develop its own software and to be a pioneer in the field,” he said. “This is what we’re going after.”
But
PC sales are the problem at hand. He said that the company will focus on selling
less-expensive computers in
In
2000, Lenovo sold 2 million computers in
“Among the 8 million new computers sold, half were sold to small towns and villages,” he said, leaning forward in his chair and gripping the armrest as he makes his point. “That explains the market potential.”
Computers
are replacing bicycles and television sets as rural status symbols in
“An
orange wholesaler can get information on orange prices in the northeast by going
on the Internet,” Mr. Liu says. “That puts him in a better negotiating position
when he goes to sell.”
These
are the sorts of things he talks about with his peers. They are wealthy men of
extreme entrepreneurial talent who nonetheless are politically impotent: party
politics still dominate decisions in
He mentions Jack Ma, founder of the online global trading company, Alibaba Group, as man in whom he confides. He also spends a couple weekends a year with an exclusive entrepreneurs’ club called Tai Shan, named after the sacred mountain associated with sunrise, birth, and renewal. There are currently just 15 members.
Otherwise,
Mr. Liu has adopted the trappings of a corporate chairman as he waits for

The books on his desk speak of a curious, eclectic mind: Barak Obama’s The Audacity of Hope and A Conversation between Two Generations of Military Men, a book about the Sino-Japanese war by the son of the late General Zhang Aiping.
He is particularly enthusiastic about Clyde Prestowitz’s Three Billion New Capitalists, a book about “the powerful yet barely visible trends that are threatening to end the six-hundred-year run of Western domination of the world,” according to its jacket. Mr. Liu says he has given the book to many friends and many government officials.
He’s not ready to give up on the PC business yet. When asked if the PC sales will become less important to Lenovo going forward, he gives an answer that alludes to his company’s origins in the state, which remains the company’s largest shareholder.
“If
we set profit growth as a top priority, we might go down that path,” he says.
“But if the shareholders have other requests, we might look into other
opportunities. Say for example - this is not true - but suppose the shareholders
want to tackle unemployment problems in
For now, he concludes, the board remains focused on profitability.