Liu Chuanzhi
Encyclopedia
Liu Chuanzhi (April 29, 1944 —) is a Chinese
businessman. Liu is the founder of Lenovo, the second largest computer maker in the world, and remains the paramount leader of the firm.
in progress, the Chinese government
commissioned Liu to distribute foreign-made computers. Soon after Liu founded Lenovo (whose English name was originally Legend, in Chinese 联想 Lianxiang), in 1984 with a group of ten other engineers in Beijing
with 200,000 yuan
. Their first significant transaction, an attempt to import televisions, failed. The group rebuilt itself within a year of hard work conducting quality checks on computers for new buyers. Lenovo soon invested money in developing a circuit board that would allow IBM PCs to process Chinese characters. This product was Lenovo's first major success. In 1990 Lenovo started to assemble PCs under its original brand name, Legend.
Liu claims Hewlett-Packard
as a key source of inspiration for Lenovo. In an interview with The Economist
he said, "Our earliest and best teacher was Hewlett-Packard." For more than ten years Lenovo served as Hewlett-Packard's distributor in China. Speaking in reference to Lenovo's later acquisition of IBM's personal computer unit Liu said, "I remember the first time I took part in a meeting of IBM agents. I was wearing an old business suit of my father's and I sat in the back row. Even in my dreams, I never imagined that one day we could buy the IBM PC business. It was unthinkable. Impossible."
Business ethics
were a key challenge for Liu in establishing and expanding Lenovo. Liu says that at first he behaved "like a kind of dictator" and spent lots of time yelling. He sent five corrupt executives to jail. Being late for a meeting could be punished by having to stand in silence before the group, a punishment that Liu accepted three times himself. Lenovo's culture gradually changed and Liu was able to relax his authoritarian style. Lenovo became an employer of choice for Chinese engineers and managers with overseas education.
from 1961 to 1966. After graduation he became a researcher with the Chinese Academy of Sciences
until the Cultural Revolution.
Liu was labeled an intellectual during the Cultural Revolution
. In 1966 he told his classmates that the revolution was a terrible idea and ended up spending 1968 to 1970 Liu as a laborer on a state-owned rice farm. Liu return to the Chinese Academy of Sciences
in 1970 as an engineer-administrator until he co-founded Legend in 1984.
.
prior to 1949.
Chinese people
The term Chinese people may refer to any of the following:*People with Han Chinese ethnicity ....
businessman. Liu is the founder of Lenovo, the second largest computer maker in the world, and remains the paramount leader of the firm.
Lenovo
In the 1980s, with market reformsChinese economic reform
The Chinese economic reform refers to the program of economic reforms called "Socialism with Chinese characteristics" in the People's Republic of China that were started in December 1978 by reformists within the Communist Party of China led by Deng Xiaoping.China had one of the world's largest...
in progress, the Chinese government
Chinese government
The phrase "Chinese government" may refer to:- Contemporary :* Government of the People's Republic of China * Government of the Republic of China - Historical :* Chinese dynasties* Beiyang Government...
commissioned Liu to distribute foreign-made computers. Soon after Liu founded Lenovo (whose English name was originally Legend, in Chinese 联想 Lianxiang), in 1984 with a group of ten other engineers in Beijing
Beijing
Beijing , also known as Peking , is the capital of the People's Republic of China and one of the most populous cities in the world, with a population of 19,612,368 as of 2010. The city is the country's political, cultural, and educational center, and home to the headquarters for most of China's...
with 200,000 yuan
Renminbi
The Renminbi is the official currency of the People's Republic of China . Renminbi is legal tender in mainland China, but not in Hong Kong or Macau. It is issued by the People's Bank of China, the monetary authority of the PRC...
. Their first significant transaction, an attempt to import televisions, failed. The group rebuilt itself within a year of hard work conducting quality checks on computers for new buyers. Lenovo soon invested money in developing a circuit board that would allow IBM PCs to process Chinese characters. This product was Lenovo's first major success. In 1990 Lenovo started to assemble PCs under its original brand name, Legend.
Liu claims Hewlett-Packard
Hewlett-Packard
Hewlett-Packard Company or HP is an American multinational information technology corporation headquartered in Palo Alto, California, USA that provides products, technologies, softwares, solutions and services to consumers, small- and medium-sized businesses and large enterprises, including...
as a key source of inspiration for Lenovo. In an interview with The Economist
The Economist
The Economist is an English-language weekly news and international affairs publication owned by The Economist Newspaper Ltd. and edited in offices in the City of Westminster, London, England. Continuous publication began under founder James Wilson in September 1843...
he said, "Our earliest and best teacher was Hewlett-Packard." For more than ten years Lenovo served as Hewlett-Packard's distributor in China. Speaking in reference to Lenovo's later acquisition of IBM's personal computer unit Liu said, "I remember the first time I took part in a meeting of IBM agents. I was wearing an old business suit of my father's and I sat in the back row. Even in my dreams, I never imagined that one day we could buy the IBM PC business. It was unthinkable. Impossible."
Business ethics
Business ethics
Business ethics is a form of applied ethics or professional ethics that examines ethical principles and moral or ethical problems that arise in a business environment. It applies to all aspects of business conduct and is relevant to the conduct of individuals and entire organizations.Business...
were a key challenge for Liu in establishing and expanding Lenovo. Liu says that at first he behaved "like a kind of dictator" and spent lots of time yelling. He sent five corrupt executives to jail. Being late for a meeting could be punished by having to stand in silence before the group, a punishment that Liu accepted three times himself. Lenovo's culture gradually changed and Liu was able to relax his authoritarian style. Lenovo became an employer of choice for Chinese engineers and managers with overseas education.
Education and early career
He attended the People's Liberation Army Institute of Telecommunication Engineering, now Xidian UniversityXidian University
Xidian University is a university located in Xi'an, Shaanxi, People's Republic of China. The university is regarded by having strong science and engineering programs....
from 1961 to 1966. After graduation he became a researcher with the Chinese Academy of Sciences
Chinese Academy of Sciences
The Chinese Academy of Sciences , formerly known as Academia Sinica, is the national academy for the natural sciences of the People's Republic of China. It is an institution of the State Council of China. It is headquartered in Beijing, with institutes all over the People's Republic of China...
until the Cultural Revolution.
Liu was labeled an intellectual during the Cultural Revolution
Cultural Revolution
The Great Proletarian Cultural Revolution, commonly known as the Cultural Revolution , was a socio-political movement that took place in the People's Republic of China from 1966 through 1976...
. In 1966 he told his classmates that the revolution was a terrible idea and ended up spending 1968 to 1970 Liu as a laborer on a state-owned rice farm. Liu return to the Chinese Academy of Sciences
Chinese Academy of Sciences
The Chinese Academy of Sciences , formerly known as Academia Sinica, is the national academy for the natural sciences of the People's Republic of China. It is an institution of the State Council of China. It is headquartered in Beijing, with institutes all over the People's Republic of China...
in 1970 as an engineer-administrator until he co-founded Legend in 1984.
Public service
As of 2002 Liu served as vice-chairman of the All-China Federation of Industry and CommerceAll-China Federation of Industry and Commerce
The All-China Federation of Industry and Commerce is a non-governmental chamber of commerce, established in 1953 as a successor to the chambers of commerce that were first founded during the Qing Dynasty...
.
Family background
Born in Shanghai, Liu's father was a executive with the Bank of ChinaBank of China
Bank of China Limited is one of the big four state-owned commercial banks of the People's Republic of China. It was founded in 1912 by the Government of the Republic of China, to replace the Government Bank of Imperial China. It is the oldest bank in China...
prior to 1949.