Bloomberg Law
Aug. 3, 2020, 11:16 AM

Zoom Halts Direct Sales in China, Will Rely on Local Partners

Felix Tam
Felix Tam
Bloomberg News
Zheping Huang
Zheping Huang
Bloomberg News

Zoom Video Communications Inc., the popular conferencing app facing scrutiny over whether it transmits data to Beijing, will halt all sales of products in China except through locally based partners.

The company informed Chinese customers that sales will be conducted only through authorized partners from Aug. 23.

“Our go-to-market model in Mainland China has included direct sales, online subscription, and sales through partners. We are now shifting to a partner-only model with Zoom technology embedded in partner offerings, which will provide better local support to users,” the company said in a statement on its website.

Zoom, based in San ...