IBM joins a growing list of Western tech companies that have been pulling out or scaling back their presence in the Chinese market:
IBM is in the process of shutting down its research and development (R&D) departments in China, local media outlets say, becoming the latest American tech giant to scale back its presence in the increasingly restrictive China-based market.
The decision by the Armonk, New York-based tech service provider will affect its more than 1,000 employees across China, local staff told multiple Chinese media outlets, including Jiemian, a news site owned by a Shanghai municipal government.
[...] IBM was among the first significant Western companies to invest in the Chinese market in the 1980s, according to China's state media.
In January 2021, IBM quietly closed its China Research Laboratory, a Beijing-based R&D center that focused on quantum computing, big data analysis, and other cutting-edge technology.
[...] IBM joins a growing list of Western tech companies that have been pulling out or scaling back their presence in the Chinese market amid increasing regulatory pressures from the Chinese Communist Party (CCP).
In response to the CCP's trade practices that have placed U.S. companies and workers at a competitive disadvantage, the Biden administration has significantly increased tariffs on imported electric vehicles, solar panels, and other imports hurting U.S. industries.
U.S. lawmakers are pushing the federal government to combat Beijing's other unfair trade practices, particularly the CCP's efforts to acquire American technological know-how. Through tactics including intellectual property theft and forced technology transfer, the CCP aims to leverage advanced technology to power its economy and advance its military.
Related:
- Yahoo Pulls Out of China Over "Challenging" Business Conditions
- Microsoft Will Shut Down LinkedIn in China
Related Stories
Microsoft shutting down LinkedIn in China:
Microsoft is shutting down its social network, LinkedIn, in China, saying having to comply with the Chinese state has become increasingly challenging.
It comes after the career-networking site faced questions for blocking the profiles of some journalists.
LinkedIn will launch a jobs-only version of the site, called InJobs, later this year.
But this will not include a social feed or the ability to share or post articles.
LinkedIn senior vice-president Mohak Shroff blogged: "We're facing a significantly more challenging operating environment and greater compliance requirements in China."
And the firm said in a statement: "While we are going to sunset the localised version of LinkedIn in China later this year, we will continue to have a strong presence in China to drive our new strategy and are excited to launch the new InJobs app later this year."
Also at CNBC:
LinkedIn was the last major U.S. social network still operating in China.
See also: Here's the Biggest Loser From LinkedIn's China Departure
Yahoo pulls out of China over 'challenging' business conditions:
Yahoo has become the latest US tech company to end its presence in mainland China as tougher regulations are imposed there.
The firm said its decision was due to an "increasingly challenging business and legal environment" in the country".
Yahoo users in China are now greeted with a message saying its sites are no longer accessible.
The company says Yahoo products and services remain unaffected elsewhere around the world.
In a statement, it says: "Yahoo remains committed to the rights of our users and a free and open internet. We thank our users for their support."
Yahoo's move follows closely behind Microsoft's announcement last month that it was removing LinkedIn - its business-focused social network - from China, something it also blamed on "a significantly more challenging operating environment and greater compliance requirements".
China is in the midst of a large-scale crackdown on big tech companies - both those from the US and its own native giants.
Also at CNN.
(Score: 2, Insightful) by Runaway1956 on Wednesday August 28 2024, @08:48AM (5 children)
It hasn't taken IBM 40 years to realize that China was stealing tech, stealing IP, stealing everything they could. China has been pretty open with the fact that when they learn something, it belongs to "the people". Actually, it belongs to "The Party". I would question who has been taking kickbacks all these years, and who was cut out of the kickback loop.
“I have become friends with many school shooters” - Tampon Tim Walz
(Score: 0) by Anonymous Coward on Wednesday August 28 2024, @09:55AM (4 children)
It wouldn't surprise me one bit if the Chinese consider Americans to be a security risk.
It's been my observation that we have fallen quite a way since Wall Street took over our boardrooms and replaced engineers with bean counters.
I am seeing the same thing happen in local city government as they warn deep cuts in police, fire, libraries parks, schools, if we don't pass a 50% city tax hike. Yet they are advertising openings for another city functionary to research historic homes in the city. That's yet another salary, benefits package, and pension plan being foisted on the residents of a small city already 16 million dollars in debt while the City Manager is paid almost $300K$/year.
Rank has it's privileges, unless enough people get sufficiently organized to get the pigs out of the public trough and have them get a real job.
(Score: 3, Interesting) by zocalo on Wednesday August 28 2024, @11:24AM
Do you know anyone in the local media? A little muck raking and public outrage is often a pretty starting point for culling the porcine herd.
UNIX? They're not even circumcised! Savages!
(Score: 1) by khallow on Wednesday August 28 2024, @12:44PM
Was there a time Communist China didn't consider US citizens a security risk? Consider that China was closed to most foreign visitors until the 1970s. Until 1994, China required tourists use a special currency. Their government has a ridiculous history of paranoia.
I agree with zocalo. That's not bean counting. My take is that it's standard parasite behavior. Increase the food supply or the stuff you actually want gets cut. Same goes for "Wall Street took over our boardrooms". Consider how much is controlled by institutions that handle vast amounts of other peoples' money.
(Score: 2) by hendrikboom on Wednesday August 28 2024, @02:23PM (1 child)
I wonder what kind of research this involves, and what the use is.
Just academic historical research?
Or collecting information that might be useful to promote tourism?
Or worries about creeping obsolescent construction materials that might form a safety or health issue?
Or no use at all?
(Score: 1, Interesting) by Anonymous Coward on Thursday August 29 2024, @01:09AM
I get the idea it is to promote tourism and excite the local real estate market, which is already heavily rentals. A local realtor has been elected mayor.
I am seeing a concerted effort to force retirees out who can't keep up with the spending required to "keep up with the Joneses" and are only allowed to have expensive things in public view, or drive on a street lest being pulled over and issued "moving violations" for infracting statutes that simply couldn't even be done at the location specified. ( I made a completely legal U-Turn about 1000 feet before a jammed intersection, where "No U-Turn on left arrow" was posted. I was cited for doing That. I made a U-Turn, to avoid what I thought was an accident in the intersection, turns out it was one of those police DUI checkpoints. My Diesel van pulls about two gallons of fuel per hour just to run it's engine. I hated just to needlessly waste that fuel if I had the option of an alternate route. Northbound was plugged solid, Southbound wide open. So I did.
A city functionary also cited me for having an old purely mechanical .1977 Toyota Corolla (2T-C engine...noted for its simplicity and longevity ).
I was holding onto it hoping California would consider it a historic car, and let me change out it's sloppy carburetor fit a throttle-body fuel injector without violating visual inspection smog. ( I guarantee emissions will be less, and I will get better mileage )
The 300K$ elite do not see a lot of us driven to the point if surrendering our pets to the shelters as we lack the financial means, and our inability to simply insert our inflated salaries into the public debt.
I was hoping to gift that old car to a neighbor kid as I am getting old and won't be able to drive it...but gifting him something some taxpayer-paid city functionary " Karen " has in her sights isn't doing the kid any favor at all. This episode has ruined my trust in my neighbors as no one will tell me who is doing me in, and causing an inordinate amount of research for me. All the time knowing this is exactly the same way the MBA wiped out the company I used to work for...sowing distrust backed by punishment.
(Score: 2) by gawdonblue on Wednesday August 28 2024, @12:02PM (2 children)
What, like making things cheaper? Naughty foreigners.
(Score: 2) by Deep Blue on Wednesday August 28 2024, @07:59PM (1 child)
The question is, how are they making them cheaper. Sustainably? Ethically? No.
(Score: 1, Informative) by Anonymous Coward on Thursday August 29 2024, @12:29AM
Since China has been moving into solar, wind and nuclear energy faster than the USA has, maybe more sustainably than the US.
As for ethically, probably about the same.
Both US and China have non-free workers: https://en.wikipedia.org/wiki/Penal_labor_in_the_United_States [wikipedia.org]
https://thediplomat.com/2022/01/forced-prison-labor-in-china-hiding-in-plain-sight/ [thediplomat.com]
(Score: 3, Insightful) by hendrikboom on Wednesday August 28 2024, @02:48PM (3 children)
Will China suffer more from loss of access to IBM's researchers?
Or will IBM suffer more from loss of access to Chinese researchers?
(Score: 2) by corey on Wednesday August 28 2024, @10:38PM (2 children)
Good question, one I was looking for an answer on. I think both. China for both income purposes, employment etc and also having skilled workers. Plus the side benefit of being across whatever the Americans are researching.
And IBM because they might be finding it difficult to find highly skilled researchers in the US. But I think that’s a complex one because at least those US researchers might be not fluent in English and be able to work on more sensitive tech etc. Plus there’s the time zone difference compared with other US IBM offices.
(Score: 2) by corey on Wednesday August 28 2024, @10:52PM
Replying on my phone is tiresome. I meant to say “might be fluent” , not “might not be fluent”.
(Score: 1) by anubi on Thursday August 29 2024, @01:24AM
After witnessing first hand how the MBA destroys technical people, I don't hold much hope for USA doing much more advancement in technical areas unless shielded from the MBA by proprietorships.
I see the USA as mostly to become a nation of rightsholders, landowners, and merchants. Not engineers or craftsmen. We have become a "service" economy where we simply have someone else do the work. We just give permission to do things, for a fee.
"Prove all things; hold fast that which is good." [KJV: I Thessalonians 5:21]
(Score: 5, Touché) by VLM on Wednesday August 28 2024, @02:54PM
Passively fighting back hasn't worked, we should try actively fighting back by exporting weapons of mass destruction like Boeing's management or DEI initiatives into China to destroy their companies from the inside.
No need to nuke them or tax them, when you can just demand "Hey I got a great idea for you guys, you need a HR department"