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US-China tech war
Tech

Citrix owner Cloud Software becomes latest US software company to quit China as economy weakens, regulations tighten

  • The move, which affects customers in mainland China, Hong Kong and Macau, was driven by the rising operational costs, a spokesman says
  • It follows similar moves by other American tech firms, such as LinkedIn and Salesforce, to scale down their Chinese operations

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A Citrix office building in Fort Lauderdale, Florida. Photo: Shutterstock
Dylan Butts

Cloud Software Group, the parent of cloud computing company Citrix, has announced it would stop all new commercial transactions in China, becoming one of the latest American technology companies to pull back from the market.

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The decision would extend to customers, either directly or through partners, in China, including Hong Kong and Macau, effective December 3, a spokesman said in a statement to the Post on Wednesday.

The business decision was made due to the “increasing cost” of operating in the region, the spokesman added. The company did not provide further details.

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It followed similar moves since last year by other American tech firms, from Microsoft’s career-networking platform LinkedIn to cloud-based software provider Salesforce, to scale down their operations in China, as they grapple with a weaker economic outlook, as well as tightened data-security and cross-border data-processing requirements in the country.
A view of Shenzhen, southern China. Photo: SCMP/ Martin Chan
A view of Shenzhen, southern China. Photo: SCMP/ Martin Chan

China implemented the Data Security Law in September 2021. Built upon cybersecurity laws, the new rules limit the ways data can be processed, stress the need to safeguard national security and interests, and make the protection of data security a national security priority.

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