IBM Corp says it has set up a wholly-owned subsidiary in Peking, IBM China Co Ltd in an effort to expand its business there. It says it obtained approval from the Chinese government to operate as a wholly-owned foreign enterprise, in a move to bring it closer to its customers and provide a more appropriate structure for its long-term presence and growth in the country. The new company will take over the part ownership held by IBM Corp in its two joint ventures in Shenzhen and Tianjin, International Software Development (Shenzhen) Co Ltd and Tianjin Advanced Information Products Corp. Up to now, IBM has operated a representative office, overseen from Hong Kong, and worked with various Chinese agents. The new company means that IBM can do its own hiring and firing and gives it greater flexibility to expand.
