http://www.nytimes.com/2015/04/20/business/ibm-project-in-china-raises-us-co
ncerns.html

HONG KONG - Shen Changxiang, who once supervised the cybersecurity of
China's strategic missile arsenal and spearheaded computer security research
for the navy, has warned of the perils of his country's reliance on American
technology.

Yet in December, the 74-year-old former military engineer, one of China's
top-ranking cyberofficials, quietly started working with a company
synonymous with American technological prowess: IBM. Mr. Shen's task is to
help a little-known Chinese company absorb and build upon key technologies
licensed by IBM, according to a statement posted on a Beijing government
website.

In the past 16 months, IBM has agreed - and received permission under United
States export laws - to provide the Beijing company, Teamsun, with a partial
blueprint of its higher-end servers and the software that runs on them,
according to IBM announcements and filings from Teamsun. As the chief
scientist overseeing the IBM project on behalf of the Chinese government,
Mr. Shen is helping Teamsun, and in turn China, develop a full supply chain
of computers and software atop IBM's technology.

The goal is to create a domestic tech industry that in the long run will no
longer need to buy American products, thus avoiding security concerns.

What IBM is doing in China is no different from what the company is doing
elsewhere. Yet IBM's activities in China have become sensitive. They are
running into efforts by the Obama administration to persuade Beijing to drop
new measures that require American companies to hand over technology in
exchange for market access.

[snip]
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