Why are foreign tech firms pulling out of China?

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Why are foreign tech firms pulling out of China?
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Yahoo Inc. is leaving the China market, suspending its services there as of Monday amid what it says is an 'increasingly challenging' business and legal environment.

HONG KONG -- Yahoo Inc. is leaving the China market, suspending its services there as of Monday amid what it says is an "increasingly challenging" business and legal environment.

Last month, Microsoft's professional networking platform LinkedIn said it would shutter the Chinese version of its site this year and replace it with a jobs board with no social networking functions. The downsizing and departures also come as U.S. and China tussle over technology and trade. Washington has imposed restrictions on telecoms equipment giant Huawei and other Chinese tech companies, alleging they have ties with China's military and government.

Western social media networks such as Facebook and Twitter have long been blocked by the Great Firewall and are generally not accessible for people in mainland China. Michael Norris, a research strategy manager at the Shanghai-based consultancy AgencyChina said compliance costs will rise further.

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