As a publicly traded company, many entities and individuals own Lenovo. The largest shareholders of Lenovo are Legend Holdings Corporation, Mr. Yang Yuanqing, and various company Directors. The rest are publicly traded. So, who owns Lenovo? This can technically change depending on the handling of trades from day to day. Related read: Hunt Forward Cyber Tactics Keep America's Enemies on Their Toes

Who Owns Lenovo? A Chinese Company?

The notion of Lenovo being a Chinese entity is a bit complicated. While the largest personal computer manufacturer in the world does have significant ties to China, there are many owners. The company’s shareholding structure shows that while there are significant ties to China, more than 57% of the shares are owned by the public. How many of those shares belong to anyone with ties to the Chinese government is frankly beyond my trading knowledge, but it’s clear that the Lenovo-Chinese ties are there but far from exclusive. Featuring company headquarters in Hong Kong, Beijing, and Morrisville, North Carolina, the tech wonder has significant ties in both the United States and China. This should be no surprise as the company has longstanding ties with both markets. However, this is the cornerstone of the issues some have with the company operating on military bases. Chairman of the Select Committee on the Strategic Competition Between the United States and the Chinese Communist Party, Mike Gallagher is working to bring Lenovo spyware risks to the attention of our government and military.

House China Committee Chairman Mike Gallagher Has Cybersecurity Concerns

Congressman Mike Gallagher isn’t a fan of Lenovo PCs being sold by Navy Exchange stores. This stems from ongoing cybersecurity concerns involving China and the United States. A battle that has been seen in many forms over the years but is growing in concern as tensions between the rivals rise. According to Gallagher in a letter written to Navy Exchange Service Command CEO Robert Bianchi, "The exchange should not be selling Lenovo products to U.S. service members, let alone incentivizing such purchases with tax-free, discounted prices…Doing so creates a major cybersecurity threat and undermines the U.S. Department of Defense's 2023 Cyber Strategy, which commits to 'foster(ing) a culture of cybersecurity and cyber awareness.'" Lenovo's Chinese spyware concerns were rebuffed by the company which pointed out their North Carolina headquarters and storied history within the United States. Furthermore, leadership is claiming that the Chinese government has nothing to do with the company and Lenovo's cyber security is not a threat. The question still remains, who owns Lenovo? Well, Legend Holdings Corp., which is the majority shareholder of the company, is under China's national Chinese Academy of Sciences. Lenovo security concerns have been a topic before breathing validity into Gallagher’s concerns.

The North Carolina, China-Headquartered Tech Company Has Had Concerns Before

Present Lenovo laptops security concerns are far from new. Back in 2018, the Federal Trade Commission (FTC) reached a settlement with the company. This was after it faced allegations of providing customers with software containing ads. There were user experience issues with the alleged software but on top of this, Lenovo would have needed to gain consent for such software. Consent it allegedly did not get from its customers. Part of the agreement between the company and the FTC was that the company had to use security software for two decades that could be audited by third parties. Additionally, the company has connections to potential cyberespionage issues. As part of the settlement, Lenovo is requiring consumers' affirmative consent before pre-installing any similar software. They also have to implement a comprehensive software security program for 20 years that is subject to third-party audits. In addition to the FTC complaint, Gallagher also highlighted a 2018 report from a congressionally chartered panel called the United States–China Economic and Security Review Commission to the point that the Navy even replaced servers that IBM sold to Lenovo aboard its AEGIS Combat System.

Who Owns Lenovo? Is It IBM?

No, since divesting in 2007 of its Lenovo shares, IBM is no longer a shareholder of the company. The PC market wasn’t working out for IBM, and its interest in manufacturing them waned. Now, the two tech giants focus on their respective strengths. Suggested read: Long Before Chinese Spy Balloons, Japan Sent the Fu-Go Balloon Bomb

Is Lenovo Trustworthy?

Determining whether or not Lenovo-Chinese ties are problematic is an avenue the government must navigate. The U.S. government is looking at additional briefs. However, national security concerns are still very relevant. From our nation’s fleet to personal devices on bases, a lot could go wrong. Regardless of who owns Lenovo, it is evident that a lot still needs to be assessed. Read next: The Iron Dome in Israel: A Closer Look