Things are going badly in the new technology market in China. The American giant is closing its R&D centers there, which will eliminate 1,000 jobs.
Careful readers of Telepolis are surely aware of this growing tensions between the US and China. The two powers are constantly exchanging power additional sanctionswhich is intended to slow down the technological progress of the “enemy”. The speech includes: restricting access to modern EUV machines and banning the export of AI accelerators.
IBM reported lower revenue in China
However, it is a decision IBMwhich pulls out of the Middle Kingdom, apparently determined by something else. Director Jack Hergenrother pointed out the weak demand in the local market, caused by, among others, Being Chinese government guidelines (Document 79, so-called “Take Away America”) and increased competition from Chinese suppliers.
The available financial data seems to confirm this. While Americans were doing well in China before the COVID-19 pandemic, in 2022 IBM’s revenue fell 22.7% and in 2023 another 19.6%. At the same time, the company’s global revenue was growing.
IBM has several research and development facilities in Chinaincluding Beijing and Shanghai. The Wall Street Journal, however, claims that they will all be closedand the role will be taken over by foreign institutions. As a result more than 1,000 people will be laid off. However, some of them may decide to work, for example, in a branch in India.
It is worth noting that American organizations are not the only ones having problems in the Middle Kingdom. Chinese technology companies are also in big trouble. In 2023, an average of 30 of them were closed every day, all year round. And in June We told you about the collapse of a large manufacturerin which billions of dollars have been invested. Things are going well for the most part for groups with close ties to the Chinese government – Huawei, YMTC, SMIC.
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Photo source: Shutterstock Studio / ShU
Text source: The Wall Street Journal, ed. possess
2024-08-26 20:46:26
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