IBM unaware of any policy action amid reports of server dumping

While Beijing and Washington remain locked in a row over cyber spying, their dispute has not led either government to order major industries to rip out and replace vital information technology systems as a form of reprisal.

Computing giant International Business Machines said yesterday it was "not aware of any Chinese government policy recommending against the use of IBM's high-performance servers within the country's banking industry".

The US company was responding to media reports on Tuesday that the mainland authorities were pressing domestic banks to replace their IBM high-end servers and mainframes, and adopt local alternatives to run their operations. The mainland is reportedly reviewing the matter in retaliation for the United States government's indictment of five Chinese military officers, who were charged last week with alleged industrial cyber-espionage against major US firms.

"In fact, news reports now state that China's National Development and Reform Commission has not heard of any alleged directive to that effect," IBM spokesman Jeff Cross said. "IBM is a trusted partner in China, and has been for more than 30 years."

The reports that use of IBM's high-end servers in mainland banks was being reviewed followed an announcement by Beijing last Thursday that it planned to implement more stringent checks of information technology products and services to strengthen the mainland's online security.

"IBM's mainframes are definitely replaceable, but the cost would surely be too high in the short term," Charlie Dai, a principal consulting analyst at Forrester Research, said, while adding that high-performance servers from mainland firms Inspur and Huawei Technologies were already used in some mainland banks.