Business
5 U.S Giants That Have Retreated From China LinkedIn
Amazon Billionaire founder: Jeff Bezos Net worth: $150.1 billion Entered China: August 2004 Exited China: July 2019
Billionaire cofounder: Reid Hoffman Net worth: $2.1 billion Entered China: February 2014 Exited China: October 2021 Microsoft-owned LinkedIn launched a “localized” version of the job-hunting site in February 2014. At the time, the platform had over four million users in China, representing 1.4% of the site’s 277 million users around the world. The company created a beta site using simplified Chinese in a bid to capture the country’s populous workforce, but in October 2021, LinkedIn announced the site’s closure due to a challenging operating environment and China’s greater compliance requirements. Two months’ later, in December 2021, LinkedIn launched InCareer, an app for job searching and recruiting in mainland China.
Yahoo
BY KHADIJAH KHOGEER; JOE SEER/ SHUTTERSTOCK.COM
Billionaire cofounders: David Filo; Jerry Yang Net worth: $3.6 billion; $2.7 billion Entered China: September 1999 Exited China: November 2021 Yahoo! China launched on September 24, 1999, but has been steadily withdrawing its services from the country in the last decade. Yahoo’s web portal, email, music, and news services closed between 2012 and 2013, and it made its exit from mainland China on November 1, 2021, citing an “increasingly challenging business and legal environment.” China’s Personal Information Protection Law also went into effect on November 1, which ramped up Chinese data privacy laws, including regulating how foreign firms store user information from China’s mainland. The Beijing office was its only location in mainland China, while it maintains a Hong Kong office.
F O R B E S M I D D L E E A S T.C O M
Travis Kalanick
Uber Billionaire cofounder: Travis Kalanick Net worth: $2.8 billion Entered China: August 2013 Exited China: August 2016 Uber China, which launched in 2013, faced fierce competition from local rival Didi during its two-year run in China. In 2015, Uber raised $1.2 billion in funding led by Chinese giant Baidu, while Didi raised $3 billion, according to TechCrunch. By July 2016, Uber China had 22.2 million monthly active users in China while Didi boasted double at 45 million active users, according to TalkingData. Ride-hailing app Uber sold its subsidiary and brand licensing in China to Didi on August 1, 2016. In return, Uber acquired an 18.8% minority stake, valued at $6 billion at the time of the merger deal, in Didi. Uber offloaded $2.9 billion in net income taxes between 2016 and 2017 thanks to the sale.
Amazon entered China on August 19, 2004 by acquiring Chinese retailer Joyo.com for $75 million. Launched in 2000, Joyo.com was said to be the largest online retailer of books, music, and videos in China at the time of the transaction. But Amazon failed to replicate Joyo.com’s early success. Amazon China contended with domestic e-commerce heavyweights Alibaba and JD, who claimed the bulk of China’s e-commerce sales by 2019. Amazon’s spokespeople notified sellers of the marketplace’s closure through statements reported across media outlets in April 2019, and closed its Chinese marketplace Amazon.cn on July 18, 2019.
Epic Games Billionaire cofounder: Tim Sweeney Net worth: $7.6 billion Entered China: April 2018 (estimated date) Exited China: November 2021 Video game developer Epic Games began operating Fortnite China with Chinese tech giant Tencent in 2018. Tencent first invested in the North Carolina-based
company in 2012. However, Epic Games pulled the plug on the Chinese version of Fortnite on November 15, 2021. Epic Games declined to disclose why it ended Fortnite China, but online gaming firms have faced regulatory challenges. In September 2021, Chinese authorities reportedly reduced gaming time for young consumers. Additionally, Epic Games’ ties to Tencent and China attracted controversy, including allegations of spyware on its online store. JUNE 2022
15 LEADERBOARD
China is a global powerhouse, but with tightening tech regulations and domestic competition, its market also presents challenges. Here are five billionaire-founded U.S.-based companies that have scaled back their operations there. Net worths are as of May 1, 2022.
