The Beijing Olympics have not approached unnoticed. China’s grand spectacle which began with multi-billion dollar construction projects including the “Bird’s Nest” stadium has seen worldwide protests and controversy of late, enhanced by the situation in Myanmar (Burma). One story that we have not heard much about is the Olympic sponsor, Lenovo. Besides being a Chinese firm, Lenovo is the first Olympic sponsor to also design the Olympic torch.

Having acquired IBM’s personal computer division, Lenovo is seeking to become the worldwide leader in computer technology. It is headquartered in Beijing, China and Raleigh, North Carolina, USA. In many ways, this firm symbolizes the coming together of two superpowers, and the Olympic sponsorship serves as the ultimate marketing tool for this global enterprise to showcase its “New World, New Thinking” trademark. The venue, however, has both costs and risks.

Last summer, Lenovo quietly opted out of its contract for the 2012 Olympics. While the price-tag for Olympic sponsorship is unknown, experts estimate that it has risen about 10% every four years, and Lenovo is paying between $80-100 million each year. Meanwhile, new media advertising, particularly via internet, has become much more cost-effective. Lenovo is supplying approximately 20,000 computers and 500 technicians for the 2008 games.

More interesting is what happens if controversy overwhelms China in the spotlight. How will the athletes respond to China’s rampant pollution? How many political leaders will decide not to attend the event?  How then, does Lenovo’s sponsorship pay off?  Until these questions can be answered, the Chinese population, filled with nationalism and pride, watch the hours countdown on special monitors around the country.