Technology Giants Crack Down In China
There was a time when many prominent American tech companies do operate in China. Even Facebook once exist in China. Presently, Apple’s current existence in the country is increasing rapidly.
It was reported last week, the exit of LinkedIn in China. The shutdown of the social network was announced by Microsoft.
The reason behind the company exit is said to be the increasing requirements of the Chinese government. Having to comply with China requirements on software operations in the country is very challenging. So they are left with no choice but to pull out of the country.
Even Apple has a problem with censorship in the country.
Lately, in many news report headlines, it was gathered that two religious apps were taken down from the Apple App Store in China. The apps closure was ordered by Chinese authorities.
Later on, it was reported that the Audible app, which is owned by Amazon, and the Yahoo Finance app have also been taken down in the country.
Apple Censorship, a group responsible for controlling and monitoring App Store, said they recorded a huge increase of Apps being removed within October this year.
It is quite hard to understand what is happening secretly in Beijing, China.
However, it is getting clear that Microsoft and Apple are in an internal issue between Chinese authorities and the tech industry.
Although, China also has tech giants that are known globally. The likes of Alibaba, Tencent, and Huawei. However, the Chinese government is more bothered about the power they hold.
In April, Alibaba paid a fine of $2.8bn (£2bn) after an investigation discovered that it had misused its notable position in the Chinese technology market.
Also in August, the Chinese government revealed a five-year proposal that contain more challenging regulations of the country’s tech economy.
The action that led to Microsoft-owned LinkedIn, exit from the country is the law that will come into force on November 11. The new law was enacted by the Chinese government. It’s called the Personal Information Protection Law (PIPL). The law will require Microsoft to operate by more regulations.
Microsoft alludes to it in a statement explaining its decision to pull LinkedIn: “We’re facing a significantly more challenging operating environment and greater compliance requirements in China.”
However, Apple has a different preference to Microsoft in the country.
It is far established and operates in the country more than any US tech company.
In the third quarter of 2021, Apple has generated close to $15 billion in China and Taiwan combined.
Apple’s global supply link relies mostly on Chinese manufacturing. And to continue operation in China, Apple knows it has to comply with the country’s rules and regulations. No matter how challenging it is.
Remember in 2010, that Google block its search engine in China. The company said it was a hacking attack from some Chinese. The company said it can’t cope with censor searches.
In China, when the government wants an app removed from the Apps Store, it must be removed.
Presently, many big tech companies have exited China. Apple is the only major technology company operating in the country.