Thought Leadership
The US technology giant IBM has announced the closure of its hardware research department in China. This measure, which affects more than 1,000 employees, is attributed to the increasing geopolitical tensions between the United States and the People’s Republic of China.
The affected department was previously responsible for the research and development of hardware such as servers and storage systems. IBM plans to relocate the jobs mainly to India. Despite this drastic change, the company emphasizes that customer support in the Greater China region will remain unaffected.
This decision by IBM is part of a broader trend in which US companies are reducing their activities in China. The reasons for this are the economic downturn in the country, increased regulatory controls and the increasing preference for domestic technologies by Chinese customers and authorities.
The situation is particularly volatile in the area of hardware technology, as this is considered a particularly sensitive area in the technological competition between the US and China. The Chinese government is working hard to promote national champions such as Huawei and reduce its dependence on foreign technology.
