UPDATE 1-Dell's China sales up 30 pct so far this year

Computer maker Dell (DELL.O: Quote, Profile, Research, Stock Buzz) has seen 30 percent sales growth in China and Hong Kong so far this year, in line with recent years, although it faces near-term uncertainties, a senior executive said on Wednesday. "Honestly, how things will turn out next year is hard to say," Alex Yung, Dell China vice president, told Reuters before a presentation to reporters.

"We don't know what kind of policy the Chinese government will come up with. If they continue to encourage domestic consumption, we wouldn't be too worried," he said.

"And also if the Chinese banks are not pulled too far (into global financial turmoil), we wouldn't be too worried."

The company's 30 percent sales growth in China so far this year compares with 30 to 40 percent growth over the last five to six years, he added.

Dell, the second largest computer maker after Hewlett-Packard (HPQ.N: Quote, Profile, Research, Stock Buzz), said last month that slow demand had spread from the United States to Europe and Asia, and had not rebounded as expected after the summer lull. In August, it posted a steep drop in second-quarter profit, saying that companies were becoming more conservative in spending.

It has said it would realign its business to boost competitiveness, cut headcount, and invest in infrastructure and acquisitions.

Yung told reporters on Wednesday that the company was seeing a mixed performance in various sectors of the market in China, with a particularly major impact on demand from export-oriented small companies, which have been hurt by the global economic slowdown.
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