US Companies Move Away from China... Nike Stops Jogging App Service in China

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] As American companies continue to withdraw or scale down their operations in the Chinese market, global sportswear company Nike has decided to discontinue its jogging application (app) services in China.

According to CNN and other outlets on the 8th (local time), Nike notified Chinese users that it will suspend services for the jogging app 'Nike Run Club (NRC)' and the workout app 'Nike Training Club (NTC)' starting from July 8th. These two apps support users in tracking their jogging or workout activities and competing with others, alongside Nike product sales.

CNN reported that Nike plans to operate a localized platform separately for Chinese users and will continue investing in updating its digital platforms within China.

The Chinese market is one of Nike's key markets. Sales in Greater China, including mainland China, Hong Kong, and Taiwan, reached $8.3 billion last year alone, surpassing the combined sales of the Asia-Pacific and Latin America regions. Additionally, Nike has manufacturing plants in China where a significant amount of shoes and apparel are produced.

Nike did not disclose detailed reasons for discontinuing the app services. However, it is interpreted as a consequence of China’s implementation of the Personal Information Protection Law and Data Security Law since the second half of last year. The Personal Information Protection Law principally prohibits the collection or use of personal information without individual consent.

Nike’s decision follows adjustments made by other American companies in their China operations. Earlier this month, Amazon announced it will cease selling and operating e-books readable on its Kindle e-reader in China starting June 30th next year. Airbnb also announced last month that it will end its business in China after July 30th, and last year Microsoft (MS) discontinued its job information service app LinkedIn in China.

This content was produced with the assistance of AI translation services.