International Business Machines ( ) closes a key research department in , a move affecting more than 1,000 employees, as local media reported. Specifically, IBM closes two business lines that specialize in research – development and testing, according to today’s (26.8.2024) publication of Bloomberg. Instead, it will turn in the future towards the service of private companies and selected multinationals operating in China. IBM is part of a growing list of companies that reduce their ambitions for China, as economic recession, increased regulatory control and the attempt to replace foreign technology “reduce emotion”. Wall Street names, such as Morgan Stanley, have transferred some of their activities abroad, while foreign investments have been partly slowed down due to concerns that Beijing favors local players. Technology is a particularly sensitive field, since the US and China are in conflict for critical sectors, from semiconductors to artificial intelligence. Beijing is trying to promote the development of national champions, such as Huawei Technologies, worrying that restrictions on American technology will hinder the country’s long-term prospects and limit its geopolitical influence. IBM plans to transfer Chinese R&D operations to offices elsewhere, Wall Street Journal said, citing an update of workers hosted by Jack Hergenrother, vice president of the company. The American company told some employees that it adds engineers and researchers to places such as Bangalore, India, reported the Journal, citing employees updated today. Representatives of the company did not respond to requests for commentary outside normal working hours.
IBM: Closes Research and Development Unit in China
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in Undertakings