Yahoo withdraws from China over the challenging environment.
Several big tech names have left China in recent months. Google, Amazon, Facebook, and several other big IT companies are already ‘banned’ in the country.
Foreign technology firms have been pulling out or downsizing their operations in mainland China. But what has made some US companies wound down operations in China.
What did Yahoo say on leaving China?
Yahoo is an American web services provider.
It provides a web portal, search engine Yahoo Search, and related services, including- my Yahoo!, Yahoo:- mail, news, finance, sports, etc.
Yahoo Inc. recently suspended its services in China amid what it says is an “increasingly challenging” business and legal environment in China.
“Yahoo Inc said in a statement its services in China stopped as of November 1. Users visiting the Engadget site run by Yahoo this week find a popup notice saying the site will not publish any new content”.
Yahoo had previously downsized in China, and in 2015 shuttered its Beijing office.
Its withdrawal from the country is largely symbolic as at least some of Yahoo’s services, including its web portal, have already been blocked.
Microsoft’s LinkedIn shutting down.
LinkedIn is an American business & employment-oriented online service, that operates websites and mobile apps.
The platform is primarily used for professional networking and career development.
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.
Epic games to pull out.
Epic Games, which operates the popular video game Fortnite, also says it will pull the game out of the China market as of Nov. 15.
The game was launched in China via a partnership with China’s largest gaming company, Tencent, which owns a 40% stake in Epic.
What’s the reason:- IT companies exit from China
Personal Information Protection Law has come into effect in China on 1 November.
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.
US-China tussle
US-China tussle over technology and trade hurting IT companies.
The downsizing and departures also come as the 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.
companies are also feeling the heat, with e-commerce companies like Alibaba facing fines. Regulators are investigating some companies and have imposed strict rules that affect gaming firms like NetEase and Tencent.
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.
“China has installed a very draconian policy governing internet operators, telling them what to do and especially what not to do,” said Francis Lun, CEO of GEO Securities Limited in Hong Kong.
Alternatives of: – Chinese Apps
“Baidu” is China’s most popular search engine, it rivals “Google“.
A messaging app like “WeChat” is used instead of what’s app or messenger.
“Weibo” a microblogging platform, is the closest equivalent to Twitter. with more than 560 million Chinese users.
Unless they use a virtual private network (VPN) to mask their internet traffic and location and circumvent. the web restrictions Chinese have fewer options for social networking and access to content and are likely to turn to strictly censored local alternatives.
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