Several big tech names have left China in the recent months. Google, Amazon, Facebook and several other big IT companies are already ‘banned’ in the country. The year 2021 has seen more foreign technology companies pull out or downsize their operations in mainland China. Wonder what has made some US companies wound down operations in China, read on to find out this and more:
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What did Yahoo say on leaving China
Yahoo Inc recently suspended its services in China amid what it says is an “increasingly challenging” business and legal environment. “In recognition of the increasingly challenging business and legal environment in China, Yahoo’s suite of services will no longer be accessible from mainland China as of November 1,” the company said in a statement.
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Microsoft’s LinkedIn shut part of its China operations in October
In October, Microsoft’s professional networking platform LinkedIn said that it would shutter the Chinese version of its website this year and replace it with a jobs board with no social networking functions.
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Fortnite maker Epic Games pulling out of China by end of November
Video game Fortnite maker Epic Games has announced that it will pull the game out of the China market as of November 15. The game was launched in China via a partnership with the China’s largest gaming company, Tencent, which owns a 40% stake in Epic.
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What is the new big reason behind IT companies recent exit from China
Starting November 1, Personal Information Protection Law has come into effect in China. It limits the amount of information that companies are allowed to gather and sets standards for how it must be stored. The new law raises costs of compliance and adds to uncertainty for Western companies operating in China. Companies caught flouting the rules could be fined up to 50 million yuan ($7.8 million) or 5% of their yearly revenue.
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US-China tussle over technology and trade hurting IT companies
The downsizing and departures also come as US and China tussle over technology and trade. The US has imposed restrictions on telecoms equipment giant Huawei and other Chinese tech companies, alleging that they have ties with China’s military and government. The companies on both sides are feeling the heat of these trade tensions. The Chinese data laws also stipulate that companies operating in the country must hand over data if requested by authorities. This makes things tough for Western companies as they may also face pressure back home over giving in to China’s demands.
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Why are Facebook and Twitter banned in China
China operates what is known as a Great Firewall which uses laws and technologies to enforce censorship. Content and keywords deemed politically sensitive or inappropriate must be scrubbed from the internet. Companies have to police their own platforms, deleting posts and making sensitive keywords unsearchable. Due to this western social media networks such as Facebook and Twitter have long been blocked and are generally not accessible for people in mainland China. Chinese alternatives have popped up over the years to fill the void left by the absence of Facebook, Twitter and other social media platforms.
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What are rivals to Google and WhatsApp in China
Baidu is China’s most popular search engine, it rivals Google. Messaging apps like WeChat are used instead of WhatsApp or Messenger. Weibo, a microblogging platform, is the closest equivalent to Twitter.
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