WASHINGTON -- The $1.75 billion deal by IBM to sell itsPC division to Lenovo may not pass domestic security reviews, according to a report today.

U.S. federal agencies are reviewing the case on grounds of national security. At issue is Lenovo's announced plans to send Chinese computer experts and researchers to IBM's North Carolina facility, said Enterprise Security Today.

That announcement is creating some consternation at high levels in the U.S. government.  Some members of the Committee on Foreign Investments in the United States are questioning whether the relocation would open the U.S. to potential acts of  industrial espionage.

The CFIUS' role is to review corporate deals that involve foreign firms to determine whether any national security threats may arise. The CFIUS includes the Defense Department, the U.S. Trade Representative's office and the Commerce Department.

One analyst said concerns over the possible breach in security are warranted.

Laura DiDio, an analyst with Yankee Group, was quoted as saying, "China is a still a Communist nation. ... They're very closed, despite these deals, and they sell stuff to people we consider enemies. So there's a real fear here, and it's not unwarranted."

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