Microsoft sunsets LinkedIn in China, cites 'challenging environment'

LinkedIn will be shutting its localised service in China. The Microsoft-owned platform said in a blog post that the decision comes as it faces "a significantly more challenging operating environment and greater compliance requirements in China". "While we’ve found success in helping Chinese members find jobs and economic opportunity, we have not found that same level of success in the more social aspects of sharing and staying informed," it said.

Moving forward, Linkedin plans to launch InJobs later this year, a new, standalone jobs app focused on helping China-based professionals find jobs in China and Chinese companies to find quality candidates. InJobs will not include a social feed or the ability to share posts or articles. Meanwhile, the company said it will also continue to work with Chinese businesses to help them create economic opportunities.

"This decision aligns with our commitment to creating economic opportunity for every member of the global workforce. While that has been our vision for nearly two decades now, it feels more important than ever as we all strive to build a global economy that delivers more prosperity and progress to people all over the world," it added. In August, LinkedIn said in a statement that it was temporarily pausing new member sign-ups to its LinkedIn app in China to ensure it remains in compliance with the local law.

The professional networking platform entered China in 2014, agreeing to requirements of the Chinese government to create value for its members in China. According to The Wall Street Journal (WSJ), the latest move by LinkedIn marks the end of the last major American social media network operating openly in the country. Google exited the market in 2010 while Facebook and Twitter have been blocked in China since 2009. Clubhouse and Signal were also blocked this year. 

LinkedIn has been often used by Chinese exporters and businessmen to connect with foreign buyers, hoping to drum up interest and sales overseas, WSJ reported. However, many Chinese internet users, particularly those working in the technology sector, tend to use a local professional networking app called Maimai, which is operated by Beijing Taou Tianxia Technology Development. LinkedIn is also up against intense competition in the Chinese job-seeking app market, with rivals such as Zhaopin, WSJ added.

Amidst this move by Microsoft and LinkedIn comes as tech companies face increasing scrutiny from the Chinese government. In July, the government clamped down on 22 anti-monopoly cases, imposing hefty fines on Chinese Internet companies such as Alibaba and Tencent. That same month, it also blocked Tencent Holdings' merger of the top two videogame streaming sites, Huya and DouYu. Alibaba was also slapped with a US$2.8 billion fine in April this year, marking one of the heftiest fines faced by a Chinese company.

At the same time, ride-hailing company Didi Chuxing was also asked to remove its app from app stores as a result of "serious violations" on Didi Global's collection and usage of personal information. Additionally, the Cyberspace Administration of China also summoned Alibaba's TaoBao, Tencent's QQ, Kuaishou, Xiaohongshu and Weibo to "clean up" all illegal content on their platforms.

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Photo courtesy: 123RF

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