IBM is closing its research and development department in China to reduce its presence in the country amid tensions between Washington and Beijing. Among other things, this will affect about 1000 jobs. This was reported by Axios.
Earlier this year, it was reported that the Chinese government wants domestic companies to push US technological dominance out of the country and achieve greater self-sufficiency in the technology sector.
One of IBM's top executives, Jack Gergenrother, told employees that the company is facing a lot of competition in China. According to the latest financial report, the company's revenue in the country fell by 19.6% this year.
It is also reported that the research and development department will be transferred to other foreign companies.
"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," a company spokesperson said in a statement to Axios.
Other American tech giants are also reducing their presence in China. In May, Microsoft asked its employees to relocate to another country, as the company wants to reduce its cloud computing and AI research in China. In addition, the company began to refrain from investing in Chinese startups.