Lenovo Group Chairman and CEO Yang Yuanqing Delivers Keynote Speech
On November 1, 1984, Lenovo was founded in a small reception room in Zhongguancun, Beijing. The year 1984 is often called the “Year One” of China’s private enterprises, as it saw the establishment of China’s first generation of true private enterprises, such as Lenovo, Haier, Vanke, Chint, Jianlibao, and others.
Over the decades, Lenovo has experienced four major phases of development at ten-year intervals: the entrepreneurial phase, the brand-building phase, the globalization phase, and the diversification phase. Now, Lenovo embarks on its fifth decade, aiming to lead AI transformation as its new mission and begin a new journey.
The year 2024 also marks the 20th anniversary of Lenovo’s global expansion strategy. As a high-tech enterprise rooted in China and among the first Chinese companies to expand overseas, Lenovo has weathered numerous economic cycles and technological changes. Today, it operates in 180 countries and regions, employs around 70,000 people globally, and boasts 18 global R&D centers and over 30 manufacturing bases worldwide, cementing its status as one of the world’s most influential tech giants.
“Looking back, I believe globalization was one of the most strategic and correct decisions Lenovo ever made,” Yang Yuanqing said. “Without reform and opening up, without globalization, there would be no Lenovo as it stands today.”
20 Years Post “Snake Swallowing Elephant”: Yang Yuanqing Details Three Key Pillars and Two Foundations of Globalization
“For Chinese companies, entering overseas markets has always been an adventure fraught with both risks and opportunities, requiring both boldness and long-term resilience,” Yang Yuanqing stated in his keynote. He emphasized that Chinese companies should not only “venture out” but also “move up” in the value chain.
In December 2004, Lenovo’s $3 billion acquisition of IBM’s $10 billion PC business, often dubbed the “snake swallowing the elephant,” captured global attention and remains widely discussed. Recalling the starting point of Lenovo’s globalization, Yang said, “In 2000, I led a team to the U.S., visiting tech giants like Microsoft, Intel, HP, and Cisco. In Pebble Beach, California, we resolved to make Lenovo a truly global enterprise within the next decade. After exploring different paths, we decided to officially set sail through the acquisition of IBM’s PC business in 2004.”
However, achieving true globalization requires more than acquisitions—it necessitates thorough integration. Yang pointed out that integration involves not just financial consolidation but systemic alignment across products, brands, supply chains, and corporate cultures—an incredibly complex process.
For instance, to mitigate employee and client attrition risks during the post-acquisition phase, Lenovo opted to operate Lenovo and IBM’s products and brands separately during a transition period. Only after stabilizing operations did the company undertake deeper integration, tailored to the characteristics of different product lines.
Cultural integration proved even more challenging. Lenovo’s legacy processes emphasized vertical management, while IBM operated with a matrix structure. Lenovo’s workflows had long relied on Chinese terminology, whereas IBM used English, with specialized jargon spanning dozens of pages. Lenovo’s management approach was direct and market-specific, while IBM’s was indirect, handled by regional teams. Lenovo’s “owner’s mindset” and “commitment to promises” contrasted with IBM’s managerial culture.
After overcoming these integration challenges, Lenovo emerged stronger, gaining valuable experiences and methodologies. For the first time, Yang summarized Lenovo’s 20 years of globalization into practical methodologies, highlighting three key pillars: global supply chain, global R&D system, and global marketing system. Additionally, he identified digitalization and ESG (Environmental, Social, and Governance) as essential foundations—critical capabilities for any Chinese company aiming to expand globally.
Lenovo Group Chairman and CEO Yang Yuanqing Delivers Keynote Speech
“The foundation for Chinese enterprises to grow and thrive in global markets is firmly rooted in China,” Yang said. He noted that 80% of Lenovo’s manufacturing, 70% of its R&D workforce, and 60% of its employees are based in China. By deeply engaging with overseas markets, Lenovo effectively integrates global resources, providing robust support to the domestic market and fueling economic growth in China. This approach exemplifies China’s commitment to high-level opening-up.
Yet, the global environment for Chinese companies “going global” continues to evolve. The current world is at a pivotal moment, characterized by shifts in global trade patterns, value chains, and technological transformations.
Yang stressed that “venturing out” is an effective path for Chinese companies to expand overseas and enhance competitiveness. However, simply entering global markets is not enough; Chinese enterprises must also accelerate “moving in” and “moving up.”
How to Achieve This Goal?
Yang offered three suggestions:
Focus on creating globally recognized brands through localized product innovation.
Build resilient supply chains by staying close to local markets.
Foster a positive corporate citizenship image through win-win partnerships.
Publication of an Authoritative Work on Globalization: Lenovo’s Rare Example
As one of the pioneers of China’s IT industry, Lenovo is among the first private enterprises that benefited from the reform and opening-up policy. Its proactive globalization over 20 years has increased its annual revenue more than 18-fold, establishing a balanced, resilient global strategy rooted in China. Lenovo is considered a “globalization trailblazer” with significant research value. At the forum, Citic Publishing Group unveiled a major release: Going Global: 20 Years of Lenovo’s Practical Globalization Methodologies.
Roundtable Discussion on “Globalization Values and Methodologies”
Addressing why Lenovo was chosen as the case study for this book, Qin Shuo wrote, “In the past two to three years, I’ve conducted numerous overseas research studies on Chinese companies. I often asked which Chinese company has done the best job of going global. ‘Lenovo’ was the most common answer, not because of its PC dominance but because it is viewed as a truly global company that seamlessly integrates wherever it goes.”
The book’s English title, tentatively Glocalization: Lenovo’s Secret Formulas to Success in an Uncertain World, encapsulates Lenovo’s 20-year journey and highlights the emerging trend of global-local integration. Academic advisor Xu Dingbo noted that a global company must integrate resources effectively and respect local markets to serve consumers and contribute to regional economies. This is a significant challenge, yet Lenovo provides a valuable model. Lenovo’s Chief Strategy and Marketing Officer, Qiao Jian, pointed out that focusing solely on localization may enhance brand recognition but not overall reputation. Lenovo’s approach, “Global Might, Local Fight,” promotes unified global principles executed with local adaptations.
Author Liu Liping observed that Lenovo operates in highly competitive global markets and successfully integrates complex global industry chains into localized operations, creating a virtuous production-consumption cycle and fostering global ecosystem collaboration.
As private enterprises reach the 40-year milestone, a new wave of “going global” is emerging. Forty years ago, China opened its doors to the world, allowing private enterprises to test new waters. Forty years later, China has become a key engine of the world economy, and Chinese enterprises are new drivers of global growth. For Lenovo, the journey from “going out” to “moving in” and “moving up” continues, sharing products and services globally. As Zhou Qiren noted in his endorsement of Going Global, companies should “become integral parts of global economic and trade relations, countering decoupling trends with positive integration.