Chinese officials have started invoking their 2008 anti-monopoly laws to probe local business practices by U.S. technology companies. The consequential soured business environment is one of the reasons that San Jose, California based Adobe Systems Inc. has declared that it will close its R&D center in China.
Other concomitant factors for this closure include rampant software piracy in the country, as well as the company’s shift toward a cloud-based software-as-a-service business model and away from one-off boxed sales of software and licenses.
“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 branch there,” the company said. “Adobe will maintain its sales presence in Shanghai, Beijing, Guangzhou, Shenzhen, Hong Kong and Taiwan.”