India, Nov. 7 -- In a major retreat from one of the world's biggest tech markets, US software company SAS Institute has shut down its operations in China and laid off around 400 employees, many of whom learned of their termination through a short video call. The move ends more than 20 years of direct business in the country, underscoring the mounting pressure foreign tech companies face amid intensifying geopolitical tensions and aggressive domestic competition.

According to a report by the South China Morning Post, employees first received an email informing them of an urgent meeting. During the brief call, executives cited "organisational optimisation" as the reason for the exit. Staff were then told to sign separation agreements by No...