Keen to make its presence felt in China's software industry, Lenovo China has introduced a $199 computer aimed at the country's vast rural population.
The low-cost machine can be plugged into a TV and comes with educational software, reports the BBC.
Lenovo, the world's third largest PC maker, has not released the specification of its proposed PC.
Personal Computer sales in China grew by 23 per cent in the last quarter, according to researchers at Gartner, and its online population could overtake the US by 2009.
About 60 per cent of China's 1.3 billion residents live in rural areas, and according to the World Bank, around 150 million Chinese live on less than a dollar a day.
Lenovo China spokesman Jay Chen said the target was the rural market.
Earlier this year, the world's second largest computer-maker, Dell, had also announced plans for a low-cost personal computer for China.
The machine comes in two configurations -- 40GB (Gigabytes) or 80GB (Gigabytes) hard drive and the Windows XP operating system
Other firms are chasing the emerging PC market in the developing world.
In June this year, chipmaker Intel teamed up with the world's largest maker of computer motherboards Asustek to produce a $200 laptop.
Software giant Microsoft has also made moves to secure market share in the developing world.
In April 2007, it announced that it would sell a software package - containing Windows XP Starter Edition, Microsoft Office Home as well as other educational software - to governments that provide free PCs for schools.
The software will sell for just $3 in some parts of the world in an attempt to double the number of global PC users.
The One Laptop per Child Project (OLPCP) is in the final stages of developing a low cost, durable laptop, designed to work specifically in an educational context.
