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unhappycamper

(60,364 posts)
Thu May 29, 2014, 06:44 AM May 2014

China tells its banks to remove IBM servers over snooping fears

http://www.theinquirer.net/inquirer/news/2346833/china-tells-its-banks-to-remove-ibm-servers-over-snooping-fears



China tells its banks to remove IBM servers over snooping fears
By Chris Merriman
Tue May 27 2014, 16:07

THE CHINESE GOVERNMENT has urged its banks to stop using servers built by IBM because it believes that they might be used for espionage.

According to unnamed sources cited by Bloomberg, the People's Bank of China and the Chinese Ministry of Finance have completed a yet to be published study and have begun to approach banks in the hope that they will remove IBM equipment in favour of locally produced servers.

The motivation for these announcements comes in part from concerns that IBM is working with the US National Security Agency (NSA), but also partly as retaliation for the recent indictment by US prosecutors of five Chinese military officers that are alleged to have hacked into US computers.

IBM sold its low-end x86 server business to Chinese computer maker Lenovo at the beginning of the year for $2.3bn, though the deal is yet to be completed after it came under US regulatory scrutiny. The servers that China has concerns about are high-end mainframe systems that remain under US control, however.
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