Thread regarding IBM layoffs

U.S. Companies Brace for Wider Scrutiny of Chinese Deals

Looks like we can expect IBM to be reporting "headwinds in overseas markets", or similar, as a contributor to their future quarterly misses.

https://www.wsj.com/articles/u-s-companies-brace-for-wider-scrutiny-of-chinese-deals-1517230800

Bill to expand the reach of CFIUS would crimp firms that have placed a big bet overseas

"IBM Corp., for instance, last year agreed with China’s Wanda Internet Technology to share the cloud computing technology used in its Watson artificial intelligence system. Behind the strategy is the belief that embedding IBM’s technology in China’s business infrastructure would steer Chinese customers toward IBM as they seek future growth.

IBM, among others, has said the bill—known as the Foreign Investment Risk Review Modernization Act—would hurt U.S. companies’ ability to compete globally. “Foreign competitors that do not face similar regulatory restrictions will seize global market opportunities while American companies are left watching from the sidelines,” IBM’s vice president of government and regulatory affairs, Christopher Padilla, testified at a recent Senate hearing.

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'The business models for IBM, Microsoft, and GE, for example, have led to the transfer of military applicable technologies to China that have likely aided the modernization of the Chinese military and intelligence agencies,' said Mr. Pittenger.

IBM and other opponents, while acknowledging national-security concerns, have suggested existing export controls to counter China rather than expanding the reach of CFIUS. IBM didn’t respond to requests for comment."

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| 942 views | | 1 reply (February 1, 2018) | Reply
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One could argue, given Watson's over-hyped track record to date, that embedding it into any host system is deemed an act of deliberate sabotage.

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