US software firm SAS exits China with a month's pay for each year of service to 400 employees

US software company SAS Institute has exited the Chinese market after operating there for at least two decades, as tensions between the two countries escalate over technology and trade.

According to a report by the South China Morning Post, the American company has also laid off about 400 people in mainland China. The lay-offs were announced via email and a short video, which cited “organisational optimisation” as the reason for the job cuts.

The compensation package includes one month of salary for each year of service, plus an additional two months’ pay, an annual bonus, and salary coverage through the end of the year. According to the report, one affected employee said SAS is expected to release a public statement next week. The company’s simplified Chinese website and job listings for mainland China have also been taken offline.

What has SAS said?

“SAS is ceasing direct business operations in China. This decision reflects a broader shift in how we operate globally, optimising our footprint and ensuring long-term sustainability,” the company said in a statement to SCMP.

The spokeswoman added that SAS would, however, maintain its presence in the company via third-party partners.

Headquartered in Cary, North Carolina, SAS entered the Chinese market in 1999 and set up a research and development centre along with a user support facility in Beijing in 2005. For 17 consecutive years, the company was recognised as the mainland’s “Top Employer” by the Dutch research firm Top Employers Institute, in acknowledgement of its employee benefits and workplace culture.

Tech fight: US vs China

The US and South Korea have signed an agreement to strengthen cooperation in artificial intelligence, quantum computing and 6G, during President Donald Trump South Korea visit for the Apec Summit last month.

The deal, aimed at China’s expansion in the tech realm, was signed by Michael Kratsios, director of the White House Office of Science and Technology Policy, according to a report by Bloomberg.

Under the agreement, the two nations will collaborate to tighten export controls on artificial intelligence and ease regulatory hurdles for tech firms, aiming to simplify data storage and usage across borders, an official said. The pact also seeks to strengthen biotechnology and pharmaceutical supply chains, enhance research security, safeguard progress in quantum technologies, and foster cooperation in space exploration and 6G telecommunications.