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Dell disputes India's claim that it may revisit business in China

By Tony Romm - 03/25/10 09:42 AM ET

The Indian government on Wednesday signaled Dell Inc. could relocate its product production out of China to a "safer environment" -- but the U.S.-based computer company explicitly denied those reports on Thursday.

“There was no discussion concerning any change in how or from where Dell will source component parts for the computers it manufactures in Asia,” a Dell spokesperson told Business Week.

The conflicting comments stem from a release posted on an official Indian website following a meeting between Indian Prime Minister Manmohan Singh and Dell executives.

Singh allegedly said in a March 23 speech that Dell would prefer to relocate its $25 billion equipment procurement business from China to an "environment with climate conducive to enterprise with security of legal system."

But Dell disputed the prime minister's remarks in an e-mail to Business Week on Thursday. Indian officials later declined to comment on the exchange, and a copy of the prime minister's speech once posted on India's Press Information Bureau website was promptly taken down.

Still, if true, Dell's business shift would only be the latest in a series of blows tech companies have dealt China recently, in part out of frustration over the country's unclear and sometimes abusive Web, intellectual property and legal rules.

Google this week signaled it would begin phasing out its search business in China, following a months-long standoff between company executives and Beijing officials over the source of a January cyberattack. Ultimately, that move has reignited the debate over China's strict Web censorship rules, especially on Capitol Hill.

Similarly, the world's largest domain-name provider, GoDaddy.com, announced Wednesday it would cease servicing new .cn Web sites in China. The company's decision to retract its business arrived in response to Beijing's new requirement that domain-name holders provide personal information to the Chinese government -- a restriction GoDaddy.com fears may pose risks to its customers.


Source:
http://thehill.com/blogs/hillicon-valley/technology/89025-dell-disputes-indias-claim-that-it-may-revisit-china-business
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