Date
18 December 2017
IBM products go on display at a technology fair. China reportedly wants domestic banks to replace IBM servers with a local brand over security concerns. Photo: Bloomberg
IBM products go on display at a technology fair. China reportedly wants domestic banks to replace IBM servers with a local brand over security concerns. Photo: Bloomberg

China probes IBM server security

China has ordered banks to replace IBM servers with a local brand in an intensified review of financial security.

The government is reviewing whether domestic banks are exposed to risk by relying on high-end IBM servers, Bloomberg reported Wednesday.

The directive was issued by key government agencies including the People’s Bank of China, the country’s central bank, and the Ministry of Finance.

It comes a week after United States prosecutors indicted five Chinese military officers for allegedly hacking US companies and stealing secrets.

IBM is not aware of any such move by China, spokesman Jeff Cross said in an e-mailed statement.

“IBM is a trusted partner in China for 30 years,” he said.

Bank of China Ltd., China Construction Bank Corp. and Industrial & Commercial Bank of China Ltd. declined to comment.

Revelations by former intelligence contractor Edward Snowden about the US government’s spying program has already hurt US technology sales in the mainland.

Last week, Beijing said it will vet technology companies operating in the country. On May 25, it was reported to have ordered state-owned companies to cut ties with US consulting firms.

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