IBM China shuts down intranet access for Chinese employees in R&D, testing positions: media reports

US technology company International Business Machines Corp (IBM) reportedly cut off intranet access for Chinese employees in research and development (R&D) and testing positions without prior notice, news media outlet jiemian.com reported on Saturday citing sources. 

A lab technician confirmed that the employees were working regular hours with no warning or "signals" before the access was shut down, and at the time a number of technological staff workers were still working overtime.

The Chinese employees have been removed from product groups on communication software and cannot log into the company intranet via VPN, though email remains accessible, according to the jiemian.com report.

The Global Times sought a comment from IBM China, but received no reply as of press time.

During an AI-themed forum held by IBM on Thursday in Nanjing, East China's Jiangsu Province, Hans Dekkers, general manager of IBM Asia Pacific region, said that the company has been operating in the Chinese market for four decades, where it has built up valuable experience, talent, and trust. An article on IBM's official website stated the company's commitment to further exploring opportunities in China as it moves into the AI era.

Chen Xudong, chairman and general manager of IBM Great China Group, said at the forum that they would continue to focus on tapping into key major clients, breaking into new markets, and expanding channels in China to help Chinese firms bridge the generative AI process from experimentation to large-scale application.

According to IBM's earnings report for the second quarter 2024, its business revenue hit $15.8 billion during the period with a year-on-year increase of 2 percent. Software revenue rose by 7 percent, while consulting revenue fell by 1 percent.