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IBM's server business remains on

By Gao Yuan (chinadaily.com.cn) Updated: 2014-08-22 10:24

IBM's server business remains on

The company logo is pictured at the IBM facility near Boulder, Colorado in this September 8, 2009 file photo. [Photo/Agencies]

IBM Corp's partnership with Chinese banks remains active despite reports that said Big Blue's products were ousted from the industry over security concerns, according to the United States company.

D.C. Chien, chairman and CEO of IBM's China group, said IBM is constantly working with a number of local banks on server procurement deals.

Multiple Chinese media outlets reported in late-May that China banned local banks from purchasing servers made by IBM over fears that the company could leak sensitive information to the US government. IBM did not immediately deny the reports.

In recent months, other US firms including Microsoft Corp, Qualcomm Inc, General Motors Corp and Symantec Corp, found themselves in government-led product bans and monopoly probes.

Gene Cao, a senior analyst at consulting firm Forrester Research Inc, said it will take years for local vendors to replace top-tier products made by overseas companies.

"The Chinese government didn't announce any specific regulations that ban the use of foreign products in banking sector. I don't think the government put out any such regulations in the next two to three years," he said.

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