LinkedIn Gets into Trouble in China

LinkedIn is one of the few internet companies that has been used to demonstrate how an internet company can do business in China. At the same time, the company can now be used to demonstrate how difficult it is to do the same task in the communist country. The company announced that it had suspended people from advertising jobs in its Chinese site. The jobs-and-professional networking service said that it had run into trouble with some regulations that had been implemented by the Chinese government. The Chinese government recently came up with new regulations that required those posting jobs to be verified first. This is according to a person who is familiar with the situation. However, the company announced that this didn’t interrupt services for companies as they would still be able to post jobs. They, however, said that they were not sure about when they would allow people or individuals from China to post the jobs. Following a rash of hiring scams in China, the Chinese government decided to increase scrutiny about the people who were posting jobs on the internet. The government was targeting pyramid schemes that had defrauded unsuspecting Chinese billions of Yens. As a result, the government passed new regulations that require people to provide their verification of identities before they can post jobs on the internet.

Since then, a person close to the follow-up said that the Chinese government has been following up the case with audits. The person who briefed the Times sought for anonymity because of the tight regulations in China. LinkedIn remains a rare internet company in a country that has banned Google, YouTube, and Facebook. For the company to thrive in China, it has managed by following local rules very closely. It manages this by censoring material that is considered sensitive by the local government. The company has also given some part of the company ownership to Chinese officials. At the same time, it has made it virtually impossible for the Chinese to join online groups using their platform. These new regulations were passed following a July incident in which a college student was deceived using a pyramid scheme. The student resulted in committing suicide. Local news media reported that the student who was identified as Li Wenxing became part of a pyramid scheme when he thought he had landed a job as a software developer. He had learned about the opportunity through an employment website.

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