doll.gifBy and large, the West’s history in China is one of complete and utter failure. Check out Studwell’s book, if you doubt us. But there’s been a change recently, and Silicon Valley seems to be leading the way. Sure, China is still fraught with risk, but Doll Capital Management is showing how it can be done. And here’s the latest: VentureWire reports (sub req) that Doll plans to announce a strategic partnership this week with the investment arm of China’s largest tech company, PC manufacturer Legend:

Doll will make a “multimillion dollar” investment in Legend’s $55 million “LC Fund II”, which closed in December 2003, said David Chao, a Doll co-founder and managing general partner. Mr. Chao will join the board of Legend Capital, a firm that manages more than $100 million and has about 30 investments across two funds. Legend Capital’s chief executive and managing director, Zhu Linan, will join Doll’s advisory board.

Legend Capital’s parent, Legend Holdings, also owns Lenovo Group Ltd., which in late 2004 agreed to purchase the personal-computer operations of International Business Machines Corp.