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IBM changes the format of cooperation with China

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As reports newspaper Kommersant, IBM CEO Virginia Rometty said at the Beijing Development Forum that the company will share technology with Chinese IT companies and promote their development. In her opinion, the Chinese IT market is one of the most promising in the world.
IBM changes the format of cooperation with China
"If you’re a country like China, with 1.3 billion people, you absolutely need your own IT industry. I think a lot of firms find that daunting, but we at IBM think it’s a huge opportunity for us, " Rometty reasoned.
Like notes Reuters, by agreeing to IBM’s proposal, Chinese companies will be able to produce any high-tech products, from processors to servers with relevant software.
IBM’s relationship with China has lasted more than a year. For example, IBM sold its personal computer division to Lenovo back in 2005. Last August, the Chinese company Inspur top.rbc.ru/economics/24/08/2014/944643.shtml took advantage of IBM’s help in building its own servers.
But as of 2015, China’s terrorism law went into effect, which mandates foreign IT companies cooperating with China to provide algorithms to circumvent security and encryption mechanisms and the ability to access users’ personal data.
There was also a Retrieved from law that requires foreign software developers to transfer the source code of their products. Only under this condition will Chinese financial institutions be able to purchase the software.
These measures are aimed at implementing China’s import substitution strategy.
Because of this tightening of the "rules of the game, " American IT developers have found it more profitable to form alliances with Chinese companies, rather than simply using them as a production base or sales channels.
So, last week IBM signed an agreement with China’s Suzhou PowerCore Technology Co to license IBM’s Power architecture processor design. The new processor, called CP1, will be part of the Chinese manufacturer’s Zoom Netcom lineup. Details of the agreement are not yet known.

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