US software firm closes China outpost, as foreign business confidence hits record low
- Kingland Systems is closing its first subsidiary outside the US and sacking its entire local workforce, sources say
- A weak economy, a new anti-espionage law and data-security regulations have put a dampener on investment sentiment
A weak economy and falling business confidence among foreign companies in China appear to have taken a toll on a small US software company’s outpost in the northeastern port city of Dalian.
Kingland Systems is closing its office in the second-largest city in Liaoning province – its first outside the US – and sacking its entire local workforce, according to two sources familiar with the matter.
The office, which opened in 2012, had 151 employees as of 2022, according to business registry records on Qichacha, a corporate data provider. Kingland, a technology solutions provider, specialises in data management and regulatory compliance for industries including financial services, insurance and agriculture.
The Iowa-based company informed its Dalian-based employees about the decision on Wednesday and offered them legally required severance pay plus one month’s salary, according to one of the sources and records of conversation between staff that were seen by the Post.
Employees who spoke to the Post said the company did not elaborate on the reasons behind the move, and some said it came as a surprise.
