NY Times: "IBM Venture With China Stirs Concerns"

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HONG KONG — Shen Changxiang, who once supervised the cybersecurity of China’s strategic missile arsenal and spearheaded computer security research for the navy, has warned of the perils of his country’s reliance on American technology.

 [by Paul Mozur | April 19, 2015 | NY Times]

Yet in December, the 74-year-old former military engineer, one of China’s top-ranking cyberofficials, quietly started working with a company synonymous with American technological prowess: IBM. Mr. Shen’s task is to help a little-known Chinese company absorb and build upon key technologies licensed by IBM, according to a statement posted on a Beijing government website.

In the past 16 months, IBM has agreed — and received permission under United States export laws — to provide the Beijing company, Teamsun, with a partial blueprint of its higher-end servers and the software that runs on them, according to IBM announcements and filings from Teamsun. As the chief scientist overseeing the IBM project on behalf of the Chinese government, Mr. Shen is helping Teamsun, and in turn China, develop a full supply chain of computers and software atop IBM’s technology.

The goal is to create a domestic tech industry that in the long run will no longer need to buy American products, thus avoiding security concerns.

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