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In an effort to branch out into new product categories, Lenovo Group Ltd. will found a new company - Beijing Eedoo Technology Ltd. - to develop a video game console called eBox.

Despite its censorship of some of its online services, the Chinese government has renewed Google Inc.'s license to operate in China. Google handles about 31% of online searches in that country.

In a move to expand its reach outside of China, Taobao.com will join forces with Softbank Corp.'s Yahoo Japan Corp. to create one of the world's largest online marketplaces. Taobao and Yahoo Japan's customers will be able to list their products and services on the other company's Website.

Tencent Holdings Ltd., China's largest Internet company, will acquire a 10% stake in Russian investment firm Digital Sky Technologies Ltd. for about $300 million. Tencent stands to benefit from Digital Sky's investments in U.S. companies Facebook and Zynga Game Network Inc.

PayPal Inc. said it partnered with China UnionPay Co. to offer electronic-payment services to Chinese consumers. The deal opens a massive segment of the Chinese market to PayPay, which has plans to double its workforce in Asia to 2,000 employees by year's end.

Representatives from high-technology industries have sent a letter to Chinese authorities opposing a new regulation requiring vendors to gain government accreditation for their products before selling to China's government agencies. Vendors claim the new rules discriminate against foreign-made technology. Total government contracts in China were valued at $87.7 billion in 2008.

BearingPoint Inc. has agreed to sell its business in China, BearingPoint Management Consulting (Shanghai) Ltd., to Perot Systems Corp. for an undisclosed amount. Perot itself was recently bought by Dell Inc. for $3.9 billion. Perot's acquisition of BearingPoint is expected to aid Dell's efforts to expand into the technology-services sector.

Jack Ma, chief executive of Alibaba Group, raised concern among investors after placing 13 million Alibaba shares at the average price of 20.78 Hong Kong dollars, raising about HK$270 million. Mr. Ma reassured investors about the financial soundness of his company and stated he does not intend to sell any more shares for his personal use.

China Oceanwide Holdings Group Co. has agreed to buy a 29% stake in Legend Holdings Ltd. -parent company of computer manufacturer Lenovo Group Ltd.- for $404 million, paving the way for Legend to become a broader corporate investment holding company. Previously, Legend had stated it would invest $1.5 billion over the next five years in a variety of industries including financial services, consumer goods, and energy.

Boosted by 277 million euro in gains from the sale of non-core assets, Alcatel-Lucent S.A. reports a net profit increase to 14 million euro from a net loss of 1.1 billion euro a year earlier. Article discusses Alcatel's earnings by market, and earnings outlook through 2011.

Byline: LORETTA CHAO AND JASON DEAN; WALL STREET JOURNAL TECHNOLOGY China's government delayed its controversial requirement that manufacturers include Web-filtering software in all new personal computers shipped to the country [...]

Byline: LORETTA CHAO; WALL STREET JOURNAL STAFF INTERNET BEIJING -- Senior U.S. trade officials called on China to revoke an order for personal computers to be shipped with Web-filtering software, [...]

At a press conference, Lenovo Group Ltd.'s chief executive Yang Yuanqing told reporters that he expects Lenovo to return to profitability in a few months because of growing PC demand in China and recently-implemented cost cuts which included an 11% reduction of its workforce. Lenovo posted a net loss of $97 million for the quarter ended December 31.

Computer manufacturer Lenovo Group Ltd. expects a net loss for the quarter ended December 31. The company plans to cut 300 million in costs by March 2010 by reducing its workforce by 2,500 positions, and cutting executive compensation by between 30% and 50%. Article discusses Lenovo's sales by market, share value, and loss of market share to rivals.

Byline: LORETTA CHAO AND JESSICA E. VASCELLARO YouTube will get a sliver of the Olympic pie, the International Olympic Committee said yesterday. The Google Inc. unit will provide about three [...]

Computer manufacturer Apple Inc. has opened its first full-service retail store in Beijing, China, marking a change in Apple's attitude toward the Chinese market. Article discusses Apple's sales, marketing strategy, brand positioning, and growth prospects in China.

Byline: LORETTA CHAO BEIJING -- EMC Corp., the market-share leader in big computer-storage systems, has turned to China for its push into the consumer and small-office market, unveiling a small [...]

Byline: LORETTA CHAO; WALL STREET JOURNAL STAFF BEIJING -- China's rapidly growing population of Internet users may have surpassed the U.S. last month to become the world's largest Internet user [...]

Byline: LORETTA CHAO AND JASON LEOW; WALL STREET JOURNAL STAFF BEIJING -- Once known for drab, government-controlled housing and ancient courtyard homes, China has become a land of multimillion-dollar apartments [...]

UK-based InterContinental Hotels Group PLC announced it will open 50 new hotels this year in China, in addition to the 81 hotels it currently operates in the country. The Asia-Pacific region is the company's fastest-growing market, accounting for 15% of total rooms.

InterContinental Hotels Group PLC is relaunching its Holiday Inn brand, involving bathroom upgrades, bedding replacements, lobby and exterior design changes, and a dramatic alteration to the logo. The $1 bil relaunch is expected to open in US locations in spring 2008, with 100 Asia-Pacific hotels revamped during the second quarter of 2008.

An initial public offering is anticipated for Alibaba.com, a Web site that provides a global trade outpost for China's manufacturing sector. The IPO is aimed at Hong Kong retail investors and could raise up to $1.3 bil; it could be the largest ever by a China-based Internet firm.

China Mobile Ltd. is the largest cellular carrier worldwide by number of customers, totaling 338 mil subscribers in a market of 500 mil subscribers. Subscribers are increasingly accessing the Internet via cell phones, reaching 44 mil, over a quarter of the nation's 162 mil online users, in the first half of 2007.

Thirty-four multinational corporations have violated Chinese water pollution guidelines, according to China's Institute of Public and Environmental Affairs. Environmental issues, especially those regarding water pollution, are moving to the top of China's political agenda, and have caused a lot of recent social unrest in China.

Ikea is introducing a smaller catalog in China, and may phase out its larger catalog in other countries as well. In order to compete in the Chinese market, Ikea has cut prices in that country. Ikea has a 43% market share of China's home furnishings industry.

Because of the upcoming Olympic Games, Chinese sports committees are promoting BMX racing to a populace that is used to viewing bicycles as a means of transportation.

Wal-Mart Corp. and other investors have invested over $500 million in 360buy.com, an online Chinese retailer. The deal indicates that the retail sector in China is becoming more attractive to investors.