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China pushing banks to remove IBM servers in spy dispute - Bloomberg

Published 27/05/2014, 08:00

(Reuters) - In an escalation of China's dispute with the U.S. over spying claims, the Chinese government is pushing domestic banks to remove high-end servers made by International Business Machines Corp and replace them with a local brand, Bloomberg reported, citing people familiar with the matter.

Government agencies, including the People's Bank of China [CNBNK.UL] and the Ministry of Finance, are reviewing whether Chinese commercial banks' reliance on the IBM servers compromises the country's financial security, the report said.

China on Monday accused the United States of "unscrupulous" cyber surveillance that included large-scale computer attacks against the Chinese government and Chinese companies.

China told its state-owned enterprises to sever links with American consulting firms just days after the United States charged five Chinese military officers with hacking U.S. companies, the Financial Times reported on Sunday.

The results of the government review will be submitted to a working group on Internet security chaired by Chinese President Xi Jinping, Bloomberg reported.

IBM was not immediately available for comment.

(Reporting by Arnab Sen in Bangalore; Editing by Gopakumar Warrier)

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