IBM is closing its hardware research team in China, a decision influenced by ongoing geopolitical tensions between the United States and China. The team, which focused on developing servers and storage, consists of fewer than 1,000 employees. Their roles will be relocated, primarily to India.
An IBM spokesperson stated that these changes will not affect the company’s ability to serve clients in the Greater China region.
This move aligns with a broader trend among U.S. tech companies reducing their presence in China due to economic challenges, regulatory scrutiny, and a shift towards local technology providers. Analysts see this as a sign of China’s declining importance for U.S. tech firms and IBM’s focus on enhancing profit margins.
The hardware sector is particularly sensitive, given the ongoing U.S.-China conflict over critical technologies like semiconductors and artificial intelligence. As Beijing promotes national champions such as Huawei, concerns about U.S. technology restrictions continue to grow.
Local media outlets, including Yicai, were the first to report the cuts.
