IBM’s China Procurement Move

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First IBM sold its PC division to China (Lenovo), now it is reported (by the FT) to be buying from China – and will move its procurement HQ (and US$40 billion a year budget) there:

    “The company said John Paterson, its chief procurement officer, had relocated to Shenzhen, the Chinese special economic zone that borders Hong Kong…It is the first time the company has moved the headquarters office of a global unit outside the US.”

With the move, IBM joins the ranks of international companies that have made China a central part of their procurement / manufacturing strategies, and who have helped drive China’s IT exports .

They will also be contributing to the Chinese trend (in developed areas linked Shenzhen) to focus on technology and value-added activities – rather than provision of cheap labour (of which there is still plenty inland).

See news source:

    IBM to move procurement HQ to China
    IBM said it would move its global procurement headquarters from New York to China in an endorsement of the country’s ever-growing role as a supplier to the global economy.
    FT (subscription)

One Response to “IBM’s China Procurement Move”

  1. Archive » Christmas Comes Early for China Sourcing| China Business Blog Says:

    […] ral, Trading, Investment, News, Corporate News The other day I reported on IBM’s move of its procurement division to China. But that was obvioulsy not enough. Now it has […]

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