Why U.S. giants keep caving to China

But the results of Beijing’s strategy increasingly go far beyond just censorship. The Chinese government has tightened its legal environment, forcing companies to hand over technology and data in order to continue operating there, threatening the security of users and the integrity of markets.

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Some firms such as LinkedIn and Yahoo announced this year they were leaving the Chinese market due to the difficult regulatory environment.

But others have stayed, handing over key aspects of their business as they have done in no other market.

Apple CEO Tim Cook said in November that Apple has a “responsibility” to do business wherever it can, including China, despite the government’s human rights abuses there. Apple censors apps from its China app store. Apple also stores encryption keys at the Chinese-owned company that operates Apple’s data center in China, the New York Times reported in June.

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