IBM China Research Institute quietly closed the international motor giant to withdraw from Shenzhen

The IBM China Research Laboratory (IBM CRL) in the United States recently closed. The institute was one of the 12 largest research institutes of IBM worldwide. In addition, the international motor giant Dehen Electric announced to relocate 2 production lines to India.

According to the WeChat public number “Xinzhiyuan” and other self-media news, IBM China Research Institute was quietly ‘closed’ on January 23. The company also responded to the closure, saying that it was an adjustment to IBM’s R&D layout in China, and that its China Development Lab, IBM China Systems Lab and Customer Innovation Center are also in the same building and will continue to serve as an innovation center to help China’s development in the future.

Another microblogger broke the news that his past work at IBM, colleagues confirmed that IBM China Research Institute has closed, “mainly internal adjustments, the original big boss retired, after all, the Institute itself is difficult to profit.”

Jiangxi Jingdezhen scholar Li Qiao told Radio Free Asia this Monday, “I saw and was quite emotional, how many technology giants were once a giant in our hearts, impossible to fall. IBM China Research Institute is completely closed, perhaps this adjustment is forced. On the one hand there are major twists and turns in the relationship between China and Europe and the United States, and there is a lot of uncertainty about whether China and the United States are moving toward decoupling.”

For its part, IBM said its experts in China will focus on collaborative innovation with Chinese customers and partners to provide practical co-creation solutions, the 21st Century Business Herald website reported. A group of mainland financial media believe that IBM’s response is actually a tacit acknowledgement of the news that its China Institute will close.

Commander, a financial scholar, told the station that IBM is engaged in research and development in the high-tech field, and now it is lamentable that it has closed its China Research Institute: “IBM Research Institute does have a long history, accompanied by the former glory of IBM’s China business, and laid a good foundation for IBM to expand its related markets in China. Now it withdraws from the Chinese market indeed for a variety of reasons.”

On the other hand, IBM also recently announced its financial results, ten consecutive quarters of declining revenue, the once ‘blue giant’ seems to have become a thing of the past.

IBM China Research Institute develops IoT Cloud Computing

IBM China Research Institute was established in September 1995, located in Zhongguancun, Beijing, it is one of IBM’s 12 global research institutions. 2008, IBM China Research Institute Shanghai Branch was established. IBM China Research Institute is mainly engaged in the development and research of IoT cloud computing, cloud computing infrastructure and cloud services, platform as a service (PaaS).

According to reports, over the past two decades, the institute has had thousands of researchers, the vast majority of whom hold master’s or doctoral degrees from top universities in China and the world. Many well-known technological achievements have reportedly come from the institute, including the famous artificial intelligence program “Watson”.

The story sparked a flurry of media coverage and reprints in mainland China. We called the IBM China Research Institute, but no one answered.

According to the analysis of the academic commander, the closure of IBM China Research Institute should be a continuation of Trump‘s China Policy by the Biden administration: “Before the Biden Administration came to power, they had already made the decision to pull IBM Research Institute out of China. They had actually inquired about the next direction of the Biden administration.”

The withdrawal of high-tech industries from China can be seen as affected by the policy, but the withdrawal of labor-intensive factories from China has made the Chinese public sweat.

Older international motor giants pull out of China

German company Dehen Electric (Shenzhen) Co. Ltd. sent a notice to its employees on Jan. 20 that the group company decided to relocate its KPO and KPS product lines from its Shenzhen plant to its India plant at the end of January due to cost increases caused by trade policies and multiple suppliers.

Mr. Liao, an engineer of a foreign company in Shenzhen who is familiar with the motor industry, said to this station that the motor industry is labor-intensive and solves the employment problem in China: “It’s really quite strange for this company to move out, he produces this kind of motor basically without any technological content, his production technology is very mature, in fact, it is labor-intensive and low-cost raw materials as the basis, this kind of This kind of enterprise moved out from China, is really quite strange.”

Public information shows that Dehen Electric (Hanning) was established in Germany in 1947, is an international veteran motor and peripheral electronic components research and development and manufacturing enterprises, in the field of Home appliances, industrial automation has a high reputation. Hanning Motor entered Hong Kong in 1996 and set up a wholly-owned manufacturing enterprise in Shenzhen in 2011, mainly responsible for the production of BLDC motors and related drive pump products.