As the US-China trade war intensifies, American businesses in China become increasingly uncomfortable. IBM announced massive layoffs in China and closed its Beijing R&D center, a major indicator that American companies are withdrawing. Despite that, IBM Asia Pacific general manager Hans Dekkers recently stated in an interview with DIGITIMES that IBM's footprint in China has actually grown in both staffing and business. He firmly stated that IBM has been in China for forty years and will continue to be there for the next forty years to come.
Dekkers took over as general manager in August 2024, overseeing business in China. Now 43 years old, he has worked at IBM for about 18 years and has been stationed in regions including Shanghai, Singapore, and Europe.
He has visited over 100 cities in China, including Shanghai, Beijing, and Xi'an. Many foreigners may only be able to name about 10 cities in China, but Dekkers firmly believes that dozens of other cities are likewise quite large and highly developed. He noted that China, like India and other Asia-Pacific countries, has a very steep growth curve.
Dekkers explained that because China is an economic powerhouse, IBM will continue to stay in China long-term. He believes the R&D center rumored to be shut down may have been relocated to another city.
While many companies split their global business into "China" and "non-China" territories, Dekkers does not share this view. He explained that from a business perspective, what matters is where clients want to grow and how IBM's technologies can empower them. Geopolitical situations vary, but the ultimate goal is to support clients.
Many companies in China still value IBM's technology and services, especially in finance and manufacturing. Many Asian companies are eager to expand, including those from China and Taiwan. As a globally integrated enterprise, IBM is well-positioned to help customers expand their businesses.
Recently, IBM has focused on hybrid cloud, AI, and quantum computing as its three core strategies. However, Dekkers mentioned that IBM does not participate in discussions related to quantum technology in China.
On the other hand, IBM continues to promote collaboration on quantum technologies in Japan, South Korea, and Taiwan. While China is part of IBM's Asia-Pacific region, its market strategy must be adjusted to its special circumstances. Even though both China and Taiwan fall under IBM's Greater China region, their level of access to sensitive technologies differs.
At the end of June, Xudong Chen, chairman and general manager of IBM Greater China, stated during his visit to Shandong that IBM's focus in China has shifted to private enterprises and foreign companies in China. Shandong, including Jiaodong, is a market IBM highly values.
His remarks revealed that while IBM often works closely with regional and government sectors in many countries, it cannot develop relationships with state-owned enterprises in China.
Chen also pointed out that although Yantai City appears low-profile, its 2024 GDP has exceeded CNY1 trillion (approx. US$139.5 billion), ranking second in the province in the number of listed companies. The city hosts several industrial clusters worth hundreds of billions of Chinese yuan, such as green petrochemicals, biopharmaceuticals, high-end manufacturing, marine engineering equipment, and automotive components. IBM is exploring cooperation with local software and IT service providers to promote digital transformation for local companies through its tech platforms and consulting services.
Article edited by Jack Wu
