CHINA TOPIX

11/02/2024 01:32:34 pm

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Adobe Shuts Down Research & Development Operations in China

(Photo: Dailyfinance) Adobe Systems, Inc. Headquarters Campus

Computer software developer Adobe Systems, Inc. plans to shut down its current Research and Development operations in China by the end of this year.

The decision comes after increasing investigation by the Chinese government into foreign companies and businesses, especially U.S technology firms.

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The Chinese government plans to tighten information security in the country following last year's revelation by former U.S NSA contractor Edward Snowden.

U.S technology companies "are all under suspicion as either witting or unwitting collaborators in the U.S. government's surveillance and intelligence gathering activities." said Scott Kennedy, director of the Research Center for Chinese Politics and Business at Indiana University.

Adobe announced it will cut as many as 300 jobs from its R&D offices, although the move won't have an impact on the company's investments in research and development.

 "Adobe's cloud businesses deliver innovation on a continuous basis, and we need our engineering teams focused in fewer sites for greater efficiency," said Donna Morris, Adobe senior vice president.

The California-based company still plans to continue its sales force in the world's second largest economy amidst rising corporate tensions.

"Adobe's presence in China will be focused on market development activities moving forward, and it will be dissolving and closing its research and development (R&D) branch there," the company said.

"Adobe will maintain its sales presence in Shanghai, Beijing, Guangzhou, Shenzhen, Hong Kong and Taiwan."

Other technology firms such as Microsoft, Cisco and Chipset Developer Qualcomm were also affected by China's crackdown on western tech firms.

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