INDUSTRIAL and Commercial Bank of China (ICBC) has deployed a new IBM mainframe computer system, the two companies said Tuesday, boosting the U.S. technology giant’s credentials in the country.

    IBM’s joint announcement with ICBC, the world’s largest bank by market capitalization, shows IBM is still doing business with China’s State-owned banks despite widely circulated media reports in May that suggested China’s Central Government had ordered banks to remove IBM equipment because of cybersecurity concerns.

    The U.S. company’s efforts to repair any public relations damage have included the announcement in recent weeks of a string of deals in China to assure investors of its future in the market and salvage its reputation with other potential Chinese buyers.

    In a statement released only in Chinese, ICBC chief technology officer Lin Xiaoxuan said that ICBC was the first bank on the Chinese mainland to introduce IBM mainframes 30 years ago, and that they have since played an “important role” in the bank’s IT operations.

    “IBM mainframes have consistently helped us keep our IT systems steady and safe and will continue to do so in the future,” Lin said.

    ICBC’s newly deployed mainframe, which was purchased from IBM several months ago, allows sensitive financial data to be routed around the world in the event of a crash at one of its 40 global branches.

    IBM also announced this week that it would team up with China Telecom to provide cloud computing services to small and medium-sized businesses.

    IBM said in April that sales in China had fallen by 20 percent, echoing disappointing results from many U.S. technology companies that suffered plummeting sales in China after revelations by Edward Snowden of extensive U.S. government spying. (SD-Agencies)