On Tuesday, Yahoo Inc. announced its pullout from China, citing an increasingly harsh working environment as a reason. The exit was primarily symbolic because many of the company's services were already blocked by China's digital censorship.
Recent government measures to strengthen its influence over technology companies in general, especially domestic behemoths, may have tipped the scales in Yahoo's favor.
"As of November 1, Yahoo's suite of services will no longer be available from mainland China," the company announced in a statement. "We are committed to our users' rights and a free and open internet," it said.
The decision was made at a time when the United States and China are at odds over technology and trade. The US has placed penalties on Huawei and other Chinese technology companies, alleging that they are linked to China's government, military, or both. China says that the US is unfairly restricting competition and stifling China's technical advancement.
Yahoo is the most recent non-Chinese technology company to depart the country. Google gave up several years ago, and LinkedIn, Microsoft's professional networking platform, said this month that it would shut down its Chinese site in favor of a jobs board. The departures underline the difficult decisions that internet businesses must make in a large potential market when the government requires them to censor politically sensitive or incorrect information and terminology.
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Chinese businesses have moved in to fill the void, developing a parallel internet with its own digital behemoths. In China, Baidu has mostly surpassed Yahoo and Google in terms of search engine popularity, while WeChat and Weibo are the most popular social media platforms.
Yahoo's departure was timed to coincide with the introduction of China's Personal Information Protection Law, which restricts the sorts of data that businesses can gather and establishes guidelines for how they must be handled.
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