China pushing banks to remove IBM servers in spy dispute
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[May 27, 2014]
(Reuters) - The Chinese government
is pushing domestic banks to remove high-end servers
made by International Business Machines Corp <IBM.N> and
replace them with a local brand, the latest move by
Beijing over U.S. spying claims, Bloomberg reported on
The news comes a day after China accused the United States of
"unscrupulous" cyber surveillance that included large-scale computer
attacks against the Chinese government and Chinese companies.
Government agencies, including the People's Bank of China [CNBNK.UL]
and the Ministry of Finance, are reviewing whether Chinese
commercial banks' reliance on the IBM servers compromises the
country's financial security, the report said citing people familiar
with the matter.
A spokesman at the National Development and Reform Commission said
the country's top economic planner has not told companies to change
their IBM servers, nor received orders from higher levels of the
government to do so.
Officials at IBM were not immediately available for comment. The
central bank and the finance ministry did not immediately respond to
request for comment when contacted by Reuters.
The results of the government review will be submitted to a working
group on Internet security chaired by Chinese President Xi Jinping,
Sources at China's "big four" state-owned banks said they had no
knowledge of the reported pressure for a technology change, saying
any replacement of banks' systems is not an easy task.
"We haven't heard about the order," an official at one of the bank's
IT department said, declining to be identified because he is not
allowed to speak to the media.
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"There aren't any locally made hardware around that can handle the
massive amount of data in the banking industry."
China told its state-owned enterprises to sever links with American
consulting firms just days after the United States charged five
Chinese military officers with hacking U.S. companies, the Financial
Times reported on Sunday.
(Reporting by Xie Heng, Kang Xize, Koh Gui Qing and Aileen Wang in
Beijing, Bi Xiaowen in Hong Kong and Arnab Sen in Bangalore; Writing
by Kazunori Takada; Editing by Gopakumar Warrier and Kenneth
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