:max_bytes(150000):strip_icc()/GettyImages-1373378229-3f9ac0ff2e2b43aba9bb76fa119c61fa.jpg "IBM Latest US Firm To Pull Back From China")
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KEY TAKEAWAYS
- IBM reportedly is closing its China research and development (R&D) department and moving those functions overseas.
- The Wall Street Journal said IBM executive Jack Hergenrother informed employees of the move in a virtual meeting Monday.
- In a statement to Investopedia, an IBM spokesperson said, “IBM adapts its operations as needed to best serve our clients.”
IBM (IBM) reportedly is closing its China research and development (R&D) department and moving those functions overseas.
The Wall Street Journal said IBM executive Jack Hergenrother informed employees of the move in a virtual meeting Monday.
In a statement to Investopedia, an IBM spokesperson said, “IBM adapts its operations as needed to best serve our clients, and these changes will not impact our ability to support clients across Greater China region.”
Beijing Pushing Chinese Firms To Buy Homegrown Tech
The closure comes amid Beijing’s push to get domestic purchasers to buy more from homegrown technology suppliers and as American firms face tighter scrutiny on their China operations by U.S. lawmakers in strategic areas like artificial intelligence (AI).
IBM’s closure would affect more than 1,000 people and mark the latest retreat from China by a top U.S. firm. In May, the Journal reported that Microsoft (MSFT) asked local employees to consider transferring outside the country.
IBM shares edged higher to $196.74 as of 10 a.m. ET Monday. They are up 20% this year.