Reuters: IBM's Rometty meeting with Chinese officials to "restore trust"

|By:, SA News Editor

Reuters reports IBM (IBM +0.3%) CEO Ginni Rometty is traveling to Beijing to meet with government officials in an effort to "restore trust with Chinese regulators and reverse slumping sales."

Like many U.S. enterprise IT peers, IBM's sales to the Middle Kingdom (and more broadly, to the Asia-Pac region) have nosedived; they dropped 23% Y/Y in Q4. All signs suggest the NSA spying uproar is a major culprit.

Also hurting IBM in China: Its sales within the country disproportionately depend on a hardware business that saw an eye-popping 26% Y/Y global revenue drop in Q4.

Big Blue recently partnered with data center owner 21Vianet (VNET +1.5%) to begin offering cloud infrastructure services within China.