China has approved Lenovo's proposed buy of IBM's low-end x86 server business for $2.3 billion.
According to Reuters, the Chinese Ministry of Commerce anti-monopoloy department has approved the acquisition, but Lenovo still requires approval from US authorities to go ahead.
Lenovo's deal with IBM to gives the Chinese PC maker control of IBM's x86 servers, blade networking and maintenance operations.
Lenvo CEO Yang Yuanqing hopes the deal will be finalized by the end of the year.
But US security officials and members of the Committee on Foreign Investment in the United States (CFIUS) are reportedly concerned that national security may be weakened, and "Chinese spies" may be able to access the Pentagon's servers.