But more than that, Lenovo Group's decision Wednesday to buy out IBM's personal computer group for $1.75 billion could well be the first of many Chinese partnerships with blue-chip U.S. companies.

It's a great opportunity ... I just want to say (Lenovo) is lucky, said Chunyu Yi, the head of the board of directors at TCL Corporation, a rival Chinese computer and computer parts manufacturer.

The Lenovo buyout is already shattering the perception that foreign companies are doing business in China simply to outsource manufacturing jobs to the world's most-populous nation so goods can be made cheaply.

As China's economy continues to expand and it starts producing more technically sophisticated goods, more U.S. companies may want to tie up with their Chinese counterparts, or even be at risk of being bought out by them outright.

Meanwhile, private companies in neighboring Japan too are beginning to change their perception of China. The Chinese market is already the second-most important destination for Japan companies, following the United States, and the more enlightened Japanese executives are aware that promoting partnerships with their Chinese counterparts will be key to their survival in coming years.

For instance, Matsushita Electric, the manufacturer of the high-tech Panasonic brand, already has 130 subsidiaries across East and Southeast Asia, of which 60 are based in China.

But at the same time, Matsushita's chief researcher for global strategy, Toshimasa Asaka, argued that like all good relationships, foreign investors must be prepared to take the time and effort to reach a business partnership that is satisfactory to both sides.

The quality of components (made by Matsushita's Chinese subsidiaries) in the beginning...was not so good, he said. It took a longer time than expected to improve supplier quality.

Likewise, the senior counsel for General Electric's international law group, Michael Gadbaw, pointed out that being able to trust business partners was key to succeeding in East Asia.

We find partners who share our culture ... and a common set of values ... about going to the markets, and creating new business, Gadbaw said, adding seeking out partners that fit those criteria could take time.

Indeed, while Lenovo's deal with IBM may be the first of many such deals between U.S. and Chinese firms, there is no doubt such alliances will take time to take off.

At the same time, there is wariness about the overall political climate between the United States and East Asia, which could keep some investors from committing themselves to the region. This could prove to be costly, however, especially as Asian countries are racing to sign free-trade agreements among themselves to get an edge in the increasingly competitive international markets.

To be sure, U.S. hostility toward China has been on the upswing as the U.S. trade deficit continues to balloon, just as U.S. trade relations with Japan were often bitter when Japanese companies appeared invincible in the late 1980s and early 1990s. So perhaps it's no surprise many policymakers have already made a point of voicing their fear about the Chinese economy's surge, and more deals like that by Lenovo will likely only increase worries about the Chinese threat.

But Rep. Cal Dooley, D-Calif., warned such an anti-globalization stance will only hurt the U.S. economy in the long run.

Too many legislators are falling for the false allure of protectionism, which threatens global growth, Dooley said, as he argued that hindering free trade ultimately hurts the wealthiest nations, including the United States, the most. But as the U.S. trade deficit continues to rise to record highs, especially with China, wariness about the country is likely to continue to grow before it abates, Dooley added.

Yet, even as U.S. legislators cry foul over China's trade practices, more and more countries within East Asia are looking to China not only as a key market, but also a major economic leader. In fact, the 12-member Association of Southeast Asian Nations drafted an agreement with China late last month to create a free-trade zone with the country within the next five years.

Still, others remain cautious about getting too deeply involved with China just yet.

China has much to do (in terms of economic and legislative reform) before it makes trade agreements with developed countries, cautioned Tadakatsu Sano, a former vice minister for the Japanese trade ministry.

Indeed, Dooley stressed the need for China to float its currency if it is to be accepted as an equal partner that can play in a level playing field of international markets. The Chinese yuan has been pegged to the U.S. dollar for the past decade at around 8.3, which most currency analysts argue is far below its fair market price. A weak yuan makes Chinese exports cheaper and thus more competitive in overseas markets, and many analysts believe the undervalued yuan is one key factor giving China such a huge edge in the international economy.

There should be no trade agreements (with the Chinese) unless there is an adjustment in the currency value, Dooley said.

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