Marina Yue Zhang

Opinion | The US and China must avoid dropping a ‘Silicon Curtain’

Both countries can pursue their technological goals without abandoning open markets and compromising global innovation

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Marina Yue Zhang

Published: 5:30am, 10 Sep 2024

I began my career in the technology sector at the American computing giant IBM in Greater China when the “Big Blue” was seamlessly operating across mainland China, Hong Kong and Taiwan. As one of the first tech companies to enter the Chinese market, IBM played a pioneering role in bridging East and West.

Many of IBM’s early executives in Greater China hailed from diverse backgrounds, bringing with them advanced technology and management practices that bridged both the tech and cultural divides.

IBM’s influence also extended beyond its own operations. The company played a key role in helping its customers and partners improve their IT systems and internal processes. For instance, IBM consulted Huawei on its Integrated Product Development project, significantly boosting Huawei’s product development efficiency.

However, China’s tech landscape has changed dramatically. IBM’s recent closure of its China Development Lab and China Systems Lab, following the 2021 shutdown of its China Research Lab, is evidence of this shifting landscape. These changes reflect not just operational adjustments but also the broader challenges that foreign tech firms now face in China.

The challenges IBM encountered go beyond shifting market dynamics; they reflect the growing tech decoupling between China and the United States, fuelled by escalating geopolitical tensions and Beijing’s increasing preference for home-grown technology.

The environment for foreign tech companies in China has become increasingly hostile, a trend that can be traced back to 2010 when Google withdrew its search services from the mainland. In 2014, China launched its “de-IOE” campaign, aimed at reducing reliance on IBM, Oracle and EMC (since merged with Dell), particularly in government and critical infrastructure.