IBM is Latest US Tech Giant To Pull Back From China

IBM is the latest American company to downsize its presence in China amid heightened tensions between Washington and Beijing. From a report: China's efforts to decrease its dependence on the West have ratcheted up local market competition -- and U.S. tech giants including Microsoft are looking elsewhere to house their operations. IBM will shut down its research and development department in China, impacting about 1,000 jobs, multiple outlets reported Monday. The Chinese government has encouraged domestic companies to overtake and push out U.S. tech dominance out of the country in a bid for self-sufficiency in the sector, the Wall Street Journal reported earlier this year. IBM has faced mounting competition in China in recent years, IBM executive Jack Hergenrother told employees virtually Monday, per the Journal. IBM reportedly plans to move its R&D operations to other overseas facilities. According to the company's 2023 annual report released earlier this year, the company saw its revenue in China drop 19.6% last year.

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