When Yang Yuanqing, chairman of Lenovo Group, took over the helm of Chinese computer giant Lenovo Group, shortly after it had acquired IBM's personal computer unit for US$1.25 billion in December 2004, many worried Yang would struggle to live up to the standards set by former chairman and Lenovo founder Liu Chuanzhi.

Three months later, Yang reported brisk quarterly sales and a healthy profit, even though, previous to acquisition, IBM's personal computer unit had for several years been running at a loss.

The 41-year-old Yang's long-term preparation, determination and sincerity helped him and Lenovo avoid the dangers such mergers often pose. Yang moved his office to New York and speaks English as his daily language; it is a sign of Lenovo's determination to globalize.

However, good progress in 2005 does not guarantee plain sailing next year. The company is now in a second period of consolidation and Lenovo and IBM employees are being merged into one unified team, a step of critical importance to keeping the business stable.

The IBM logo has been dropped from ThinkPad products and the effect this has on sales is yet to be seen. Lenovo is also posed to export its success in China to other emerging markets and will set up a separate Indian business. If successful, it will be a huge boost to Lenovo's development.