US-based Forrester Research to close China office
18/05/2023 17:24
May 18 (Reuters) - U.S. tech research and advisory firm
Forrester Research FORR.O has decided to close its office in
mainland China after the country's government increased scrutiny
on western consultancies.
A company spokesperson said on Thursday the closure was part
of a broader global restructuring plan, with the majority in the
U.S., driven by an unsteady economy.
Overseas business lobbies in China have said they were
unnerved by a sweeping crackdown on consultancies and due
diligence firms that is damaging investor confidence in the
world's second-largest economy.
China state media has described the crackdown as
"intensifying" law enforcement aimed at protecting national
security, and a broadening of legislation that criminalizes the
transfer of information and data.
The crackdowns "send a worrying signal and heighten the
uncertainty felt by foreign companies operating in China", the
EU's Chamber of Commerce in China said earlier this month.
Forrester Research has begun to let go of employees and
plans to lay off most of its analysts in the country, the South
China Morning Post reported earlier on Thursday, citing a person
with knowledge on the matter.
The Financial Times has also reported, citing sources, on
the firm's plans to lay off the majority of its China analysts
due to Beijing's intensified scrutiny of western consultancies
in the country.
(Reporting by Manya Saini in Bengaluru; Editing by Shinjini
Ganguli)
((Manya.Saini@thomsonreuters.com;))