Microsoft-owned social networking platform LinkedIn has announced that it will close down its last service available in China, stating “fierce competition and a challenging macroeconomic climate” as the reason.

The platform was one of the few US technology firms that successfully operated a social media site in China, where the internet is tightly regulated and censored.

The company had created a unique domestic version of the career networking platform operated locally to comply with China’s stringent laws.

However, in 2021, LinkedIn suspended new sign-ups for its app in mainland China, citing “a significantly more challenging operating environment and greater compliance requirements in China.”

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Microsoft then replaced the app with a simplified version called InCareer, which allowed local professionals to continue to find and apply for jobs as well as stay connected with their network.

LinkedIn said in a statement on Tuesday that “despite our initial progress, InCareer faced fierce competition and a challenging macroeconomic climate, which ultimately led us to the decision of discontinuing the service.”

The platform confirmed that closing the service would lead to “a reduction of roles for 716 employees”.

However, the firm added that it will still maintain a presence in China by focusing on “assisting companies operating in China to hire, market, and train abroad”.

LinkedIn’s success in China was initially propelled by the country’s culture of connections, or “guanxi”, which places high value on an individual’s contacts and professional network.

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However, in recent years, the platform has lost its market share as innovative local apps have gained popularity. Most US internet giants, including Facebook, Twitter, Instagram, and YouTube, have long been blocked in China for failing to comply with China’s strict and opaque regulations.

Tech companies that operate in China are forced to block unwanted content and topics deemed politically sensitive to maintain social stability.

LinkedIn has been criticized recently for removing the accounts of dissidents and deleting content on sensitive issues.