The slowdown in China’s economy and declining business confidence among foreign companies appears to be hurting the former base of a small American software company in the northeastern port city of Dalian.
Kingland Systems will close its office in Liaoning province’s second-largest city and lay off all local employees, two people familiar with the matter said.
The office opened in 2012 and had 151 employees as of 2022, according to company registration records from company data provider Kichacha. Kingland is a technology solutions provider specializing in data management and regulatory compliance for industries such as financial services, insurance, and agriculture.
The Iowa-based company notified Dalian-based employees of the decision on Wednesday, according to one of the sources and a transcript of conversations between employees reviewed by the newspaper, and the legally required resignation. In addition to the money, he offered her one month’s salary.
Employees who spoke to the Post said the company did not elaborate on the reasons behind the move, which some said came as a surprise.
Kingland did not immediately respond to a request for comment Thursday.
The company joins a growing number of foreign companies that have pulled out or are considering leaving the country since the coronavirus pandemic, where strict infection control measures have eroded investor confidence. .
Despite the Chinese government’s efforts to project a welcoming image, foreign business confidence in China hit an all-time low last year, according to an annual survey released by the European Chamber of Commerce and Industry earlier this month.
Only 15% of companies surveyed considered China a top investment destination, and 42% said they had plans to expand their operations in China over the next year. Both numbers are record lows.
The survey found that respondents in the information and communications technology sector were the least interested in investing further in China, citing concerns about the country’s strict data policies and the nation’s move toward technological independence with an emphasis on domestically produced products. It reflects.
According to the survey, many foreign companies are considering moving their investments from China to Southeast Asia, India, Europe and North America.
