BizChina

The world's fourth-largest personal-computer company by volume is tailoring its approach in emerging markets to first-time buyers, who account for a larger chunk of sales in such areas than they do in more-developed markets, Chen Shaopeng, senior vice president of Lenovo's emerging-markets business, said in an interview.

To attract such buyers, Lenovo has employed tactics that have made it China's PC market leader: offering colorful models and products that can cost less than $300, as well as using retail franchisees who have insight on their individual markets. Lenovo also has increased advertising, using one of the world's biggest billboards, a 1,300-foot-long spot near the Kremlin.

Lenovo increased its share of Russia's market to 8.3% of PCs shipped in the third quarter from just 1.4% in the same period in 2008, according to research firm IDC. Lenovo is now the fifth-biggest PC vendor in Russia, up from No. 14.

In India, where the company aims to add 1,000 franchised retail stores to the 350 it has already, Lenovo has grown to 9% of the market from less than 7% at the end of 2008. The company ranks fourth in India, after Dell Inc., Hewlett-Packard Co., and Acer Inc. by volume.

Lenovo has been trying to steer away from relying on advanced markets like the U.S. to fuel overseas growth. The company struggled with weak consumer sales and declining market share after its purchase of International Business Machines Corp.'s PC business in 2005.

China cut its quotas on first-half exports of rare-earth metals around 35%, a move likely to feed trade tensions and concerns among global buyers after an even deeper cut late this year.

China supplies around 95% of the world's rare-earth metals, which are used in high-tech batteries, television sets, mobile phones and defense products. Beijing's decision to cut export quotas by 72% for this year's second half sparked criticism that China was taking undue advantage of its position to raise prices.

A supply crunch would have its deepest impact on Japanese technology manufacturers, such as Hitachi Ltd., but the problem extends further. Sumitomo Corp. and other companies process the metals and ship them world-wide, said Hallgarten & Co. strategist Christopher Ecclestone. Motors for Dyvacuum cleaners contain magnets made of neodymium, a rare-earth element, while such aerospace companies as Boeing Co. and Lockheed Martin use rare-earth materials for guidance systems.

China's Ministry of Commerce opened an antidumping investigation into U.S. exports of a livestock feed that the U.S. farm industry lobby has sought to promote among Chinese feed mills, the latest in a series of trade actions Beijing has started against major trading partners.

The ministry said in a statement Tuesday it plans to look for any evidence of dumping of distillers dried grains, or DDG, from July 2009 to this past June, but may widen the window to see if there was any harm to China's industry starting from 2007.

China also slapped antidumping duties on U.S. chicken this year, accusing the U.S. of subsidizing its poultry industry and hurting China's domestic industry.

U.S. farm interests have viewed DDG, a byproduct created when corn is turned into ethanol, as a big new trade opportunity in China. Imports rose strongly this year as some in China's farm sector chose it over corn as a feedmeal for livestock, in part because it is relatively higher in protein and fiber.

Wal-Mart (WMT) has taken a stake in 360buy JingDong Mall, the leading China-based online seller of consumer electronics and communications gear, Reuters reports. The story says 360buy disclosed that it has received $500 million in funding from six strategic partners, including Wal-Mart. The size of the retail giant’s investment was not disclosed.

Among 360buy’s rivals: E-Commerce China Dangdang (DANG), which recently completed an IPO in the U.S., selling 17 million American depositary shares at $16; the shares now traded for $28 and change.

Wal-Mart itself no slouch when it comes to retailing in China: The company on its Web site says that as of August 5 it had 189 stores in 101 cities, creating over 50,000 jobs. The company also operates an online version of its Sam’s Club unit in China.