Being labelled a “pawn of the villain” who must be “severely punished” is not a good sign. These were the words of the People’s Daily, a Chinese Communist party mouthpiece, in a recent article about US tech companies.
Microsoft, Google, Yahoo, Cisco and Apple all came in for a scolding.
China has already closed its doors to online media groups such as Facebook, Twitter, YouTube and Google. But recently a wider range of tech companies has been scrutinised by authorities. Last week four Microsoft offices in China were raided as part of an unexpected antimonopoly investigation. This follows a ban on Windows 8 for Chinese government use in May. US semiconductor designer Qualcomm has cut revenue projections this year and next due to Chinese licensees underreporting royalties; the company is also facing an antimonopoly investigation that could result in a fine of up to $1bn. Meanwhile, Cisco’s China sales slumped 4 per cent last quarter, and 5 per cent last year.