IBM to close China research centers, resulting in over 1,000 layoffs

IBM is reportedly closing down its⁢ research and development (R&D) ‌departments in China, following the ‌trend ‌of other ⁤American tech giants reducing their presence⁤ in the Chinese market. Local media​ outlets have reported that this decision will impact over 1,000 employees across China.

According⁤ to staff members who spoke ‌to Chinese media outlets, including⁢ Jiemian, an online news site owned by the Shanghai⁣ municipal government, IBM’s move will‌ affect its‌ workforce in China. In response to these reports, an IBM spokesperson stated ⁤that the‌ company adjusts its operations based on needs but assured that​ these changes would not affect their ability ‌to support customers in China.

IBM was one of the​ first​ major Western companies to invest in ⁢the Chinese market back in⁤ the 1980s. However,⁤ it has now ‌joined a ⁤growing ‍list of Western tech companies scaling⁣ back or ⁢completely withdrawing from China ‍due to increasing regulatory pressures ‌imposed by the Chinese Communist Party (CCP).

LinkedIn, ‌owned by Microsoft, shut down ​its services in China last year citing a‍ challenging operating environment and greater compliance requirements. The⁣ company had ⁢faced ‍criticism for blocking⁣ profiles related to researchers and journalists working⁤ on topics involving China. LinkedIn later launched ⁣a​ job-search-only platform called InCareer for Chinese business professionals but ultimately phased ‌it out‍ due to fierce competition and a challenging macroeconomic climate.

Yahoo also announced its withdrawal from mainland China last‌ year due to the increasingly challenging business and legal environment‍ there. Airbnb decided to retreat from China earlier ​this year⁢ as repeated lockdowns and strict ‌COVID-19 measures disrupted various⁢ industries.

In addition, Amazon pulled its Kindle service ‍out⁤ of the Chinese market last year while Microsoft ⁣asked its employees ⁢based in China to consider relocating elsewhere.

These‍ moves come amid flaring trade tensions⁤ between the United States⁤ and communist China. The Biden administration has increased tariffs on imported goods such as electric⁣ vehicles and solar panels as a response⁢ to unfair trade practices by Beijing that disadvantage American companies and workers.

U.S. lawmakers⁢ are urging action against Beijing’s ‍unfair trade practices aimed at acquiring American technological know-how through tactics like‍ intellectual property theft and forced technology transfer.

U.S Ambassador Nicholas Burns has warned that ​there is ​no level playing field for American companies operating in China due to intellectual property‍ rights violations, forced technology transfer, massive subsidies provided ​by both ​central and provincial⁤ governments favoring⁣ domestic competitors ⁤over foreign⁤ rivals.

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