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IBM Will Share Tech With China To Help Build IT Industry There
An anonymous reader sends this report from Reuters:
IBM Corp will share technology with Chinese firms and will actively help build China's industry, CEO Virginia Rometty said in Beijing as she set out a strategy for one of the foreign firms hardest hit by China's shifting technology policies. IBM must help China build its IT industry rather than viewing the country solely as a sales destination or manufacturing base, Rometty said. ... [Her] remarks were among the clearest acknowledgements to date by a high-ranking foreign technology executive that companies must adopt a different tack if they are to continue in China amid growing political pressure. A number of U.S. technology companies operating in China are forming alliances with domestic operators, hoping a local partner will make it easier to operate in the increasingly tough environment for foreign businesses.
Bad idea. they will get all the information and ditch IBM take it all for themself. Unless they only share opensource things that is already open then its fine.
Everyone knew it.
The people who swarmed there must have figured they could kick it down the road past their retirement just leave the mess for those that came after.
Amazing the spin Reuters is willing to put on this. It's not sharing, IBM isn't doing this out of the goodness of its own heart, they are profiting from this.
They are ready to do anything to bring the dividend to 15$/share. And the fact that they can just give away their technology to the Chinese shows how much of a guaranteed income IBM gets.
The actions of the NSA et.al. has ensured that no countries could possibly take any American company's word for the integrity of their technological products. Because even if the companies themselves are honest, their executives are under legal threat of jail and the company the threat of crippling fines if they reveal the extent of their cooperation with NSA. The only way that companies like Google can be trusted is if they protest the interference of the US government by leaving the US market (just as they protested the interference of the Chinese government by leaving China).
Otherwise, the only reasonable trade exchange is to either boycott all American companies, or require a full and open technological exchange and even then it's possible that something malicious might slip through.
But now Red China? Jesus Freakin Christ already!
Oh, this one is going to end well. I can really see IBM generating colossal profits out of that.
Especially since IBM sold their PC and Server divisions to Lenovo.
And this will be the last of the money made by IBM in China. They're going to spend a few more years teaching other companies everything they know, and then the Chinese will kick them out and undercut them with their own technology. Just brilliant, IBM. *golf clap* Now they're actually training their own competitors for some short term profits.
If you haven't yet sold your IBM stocks in the last few decades, now might be the time to do so.
Irony: Agile development has too much intertia to be abandoned now.
Just so you know, you have never dropped nukes in china.
share technology with Chinese firms and will actively help build China's industry,
I think most American firms already share technology with Chinese firms to help build China's industry.
Wittingly or not.
Is selling wares with built-in NSA backdoors an honest business practice?
Boo-fricking-Hoo !
IBM has long ago become a services company, selling over priced, vague, business services, mostly to US Government and other companies already locked in. That business is not exportable since its bums on seats and the bums are H1Bs in America.
The only other business it has is the world biggest patent troll, patenting variations of other peoples inventions. (Remember the stack boundary check that IBM patents with the tiny addition of 'in an OS')? And hitting them for money (Twitter hit for $36 million rather than challenge 900 crappy troll patent).
And I'm sure many here have experienced IBM 'Business Consultants' coming in and throwing in their chaos. I remember IBM convincing top management that they should do QA, then rejecting non-IBM software as sub-standard on specious claims.
They have nothing to offer a company but pain and politics.
On the plus side, they're attacking China! So perhaps they can undermine that economy the way they did in the US, and are trying to do in Europe with software patents.
for IBM to lay off another couple hundred thousand.
Best Slashdot Co
And sued into the poor house by the shareholders and board of directors. This is not just training competition, but competition in a country notorious for wiping its ass with IP and trade secrets, using every other dirty trick to get ahead and using hyper nationalist politics to freeze out companies like IBM. Were she a politician and not a business executive, it would be roughly grounds for treason.
Geebus ! god save us from these short-sighted MoFos.
I would like to say that the Dept of State needs to know about this.
http://www.ecfr.gov/cgi-bin/text-idx?node=pt22.1.121
However, too many members of the Executive Branch in DC seem to hate the USA more than they hate the Chinese and are likely to WANT this to happen to all our Corps.
-- kjh
Those who grow snakes die poisoned.
Thanks NSA! Great going!
After all of the American workers are fired, who is going to buy all the cheap stuff they make in China? The Chinese? Well, first you would have to pay them more. So the goods would cost more to produce. Doesn't seem to make much sense from a business point of view. Maybe from a charity point of view. On the other hand, hurting 1/3 of a billion in order to help 1 billion is not really a great ratio for a charity either.
If you are not allowed to question your government then the government has answered your question.
just work with them. They'll steal it before long.
I think, American company will use the chep workers for developing their production, but who knows=)
Comment removed based on user account deletion
Yes! And not only that!
Opensource should be renamed to Social Source because opensource is an obvious sexist reminder of how desperate are male developers of getting women to open their 'source'.
small number of wealthy people, will become even more wealthy at the expense of American, middle class, workers. Welcome to the global economy!
The USA is only 4X older than me...perspective
Bluto: What? Over? Did you say "over"? Nothing is over until we decide it is! Was it over when the Germans bombed Pearl Harbor? Hell no!
Otter: [to Boon] Germans?
Boon: Forget it, he's rolling.
They did business with the Nazis in WWII, why not the Chinese.
http://en.wikipedia.org/wiki/IBM_and_the_Holocaust
I've looked at all the comments so far and no one has mentioned something: IBM has been shipping technical work overseas for many years. Two regional offices where I worked at as a developer were closed and IBM told us that we could keep our jobs if we moved to India and took Indian pay.
India is becoming more expensive and IBM has to keep their margins growing to appease Wall Street and CEO can get her millions and millions of dollars in bonuses.
I see IBM setting up a Chinese outfit and then sending technical work to them at a huge discount.
They did it before. Where do you think Lenovo came from?
So, if we suck their @#$% long enough they will be our friend?
Maybe we could put China on double secret probation.
... and we do not trust USA MORE
... for short term profitability is alive and well.
The planes had to drop them early because they'd have run out of fuel had they flown farther. It was a simple fueling mistake.
Ezekiel 23:20
Actually General McArthur (or was it Patton) wanted to nuke Beijing also, but was denied...
I would hate to be the one to stop this wonderful asian bashing session, but in the interests of rational conversation, could the American folk on this board quickly summerise what exactly the chinese have stolen?
Some rules:
1. Defence IP does not count.
Project Azorian, and the flagrant dismantling of Viktor Belenko's Mig 25 by the USAF have already validated this.
2. If your IP was not protected by the Paris Convention or a private non-compete then it is fair game.
"know how" - I am welcome to figure out the formula to Coca Cola.
3. If your patent was only taken out in the USA, and no validated in China, then silly you.
Unless you expect American companies to honour my Zimbabwean patents.
4. If someone broke into your offices or computers, please provide the case number from the local police you reported it to.
If you cannot be arsed to report this theft to the local constabulary, then it never happened.
5. If you showed/told some chinese company all your know-how in the hope of making a sale, then you are dumb.
If you think the chinese are cunning at this "one-more thing, then we'll buy", you should try selling to American, Indian, or Israeli companies.
6. If you agree to "localisation" or "knowledge transfer" to get the gig, it is not theft.
I await details.
Seriously, neo-cons are the ones destroying american business just for short term profits. GE, HP, att, gm, Boeing Cisco, and IBM are companies being ran into the ground by fucking neo-cons who look at stock manipulation rather than profits as ideal.
I prefer the "u" in honour as it seems to be missing these days.
We are simply witnessing another small step in the process by which China becomes the world's economic superpower and the US economy withers away. It seems fine while it's happening, another few years revenue locked in, share price rising. But no-one notices another round of layoffs for US employees replaced by offshore contractors. Might take 10, 20, 30 years, I can't tell, but there's going to be an almighty reckoning when the last white-collar job has been shifted offshore and the US shell companies have nothing left to sell.
Well, American companies chewed their own right arm off, why not the left?
There is a strong argument that China is more of a Fascist state than a Communist state. I sincerely doubt that Karl Marx would agree that the crony capitalism instituted in China is anywhere near an ideal communist state.
If a nation expects to be ignorant and free, in a state of civilization, it expects what never was and never will be-T J
... covered in flies.
Didn't IBM do something like this with NAZI Germany?
Actually General McArthur (or was it Patton) wanted to nuke Beijing also, but was denied...
President Truman had reprimanded MacArthur on several occasions for publicly disagreeing with him over the general's proposal to pursue the Chinese across the Yalu River into China during the Korean War. The president relieved him of his command in April 1951. In secret, they had even discussed the possibility of using nuclear bombs against the North Koreans and the Chinese.
May I say you fucking descendants of dirty genocidal colonizers?
It doesn't matter how militarily strong America is, you forget that China has nukes now, too. If you want to make sure that you destroy the whole country, you have to run the risk of losing half of your own country. They won't stand still after being nuked.
Huawei is not only selling networking gear but quickly becoming an all-encompassing IT behemoth with only two problems to solve in order to be the one-and-only, neither of which will last forever: bad press in international markets and a too slowly growing (for Huawei's pace) internal market.
For nations that have seen the truth (US and Australia), they've rightfully limited their presence.
Currently the likes of IBM have only two clear paths: join ventures with Chinese companies (no other way to get into China), get the money today and hope for the better for tomorrow, or not going into China and just perish in ten to fifteen years -oh! and still letting go today's money to other companies that go with option 'A'.
There's a third option - survive by using a combination of influence over the US(to handle Door A folks) and business strategy to minimize the Chinese threat.
Twitter supports and protects racists - by smearing their critics with the "Hate Speech" label.
"There's a third option - survive by using a combination of influence over the US(to handle Door A folks) and business strategy to minimize the Chinese threat."
The problem is that China is hugh and has a lot of wealth. Taking it to an extreme, China right now could afford 20 years of autarchy just growing its internal market and still come out of it with the biggest companies on each market to blow out competition once they go international. Both governments and corporations know that; this is why they want to take positions (and getting some money right now) so to minimize their loses.
...Rometty announced that IBM had contracted to supply Lucifer, Prince of Darkness with an annual supply of damned souls, All employees below VP level will in future be required as part of their annual assessments to demonstrate an adequate level and depth of involvement in antisocial and immoral behaviour outside of company time. When challenged that junior managers were being set annual percentage targets of souls irretrievably damned, Rometty was quick to deny the allegation, replying that the company was embarking on a strategy of increased and accelerated promotion of promising candidates through the company management heirarchy, which it was anticipated would more than make up for any shortfall amongst the professional ranks. Rometty was reluctant to disclose precisely what IBM expects to receive from the agreement, which she described as "an excellent deal for the shareholders", but it is believed to relate to maintenance of the IBM share price for a future period of some few years. When asked why only lower-ranked employees would be subject to the annual requirements, Rometty replied that, company senior management having in most cases already sold their souls to the Dark Lord in any case they were adopting their preferred approach of leading by example.