Newegg: ‘We’re Not Leaving China, Our Funding is Fine’

In-the-know Westerners know Newegg as the best place to buy all sorts of electronics and computer hardware online. The e-commerce company has a Chinese store too, but it controls less than 1 percent of the country’s e-commerce market and recently rumors have been swirling of a China pullout. Yesterday the Beijing Business Times reported that the company’s US HQ was tired of injecting funds into the China branch and had cut off the cashflow, leading to the company’s likely pullout from China later this year.

But Newegg China has responded via its offical Weibo account that the Beijing Business Times account is “fiction”, and has demanded a public apology from the paper in addition to noting that it maintains its right to take the newsmen to court if necessary. The statement notes:

Not only has the US HQ not cut off funding [for Newegg China], but in the future it will continue funding in larger amounts, and this July Newegg China will hold an unprecedented large-scale sales event.

So, either Newegg China is going under or it’s only getting stronger and it’s about to have a huge sale. Given that the Beijing Business Times story seems to be based pretty much entirely on the story of one anonymous former Newegg China employee, my guess is that the latter is closer to the truth, but you never know. Either way, I hope the news about an unprecedented sales event is true, because I want to pick up some cheap hard drives! Who’s with me?

(via Sina Tech)