Beijing: Samsung Electronics has decided to withdraw its home appliance and TV sales business in China amid its struggle to shore up its presence in one of the world's most important markets, industry sources said Wednesday. The decision marks a strategic shift as the company continues to navigate challenges within the Chinese market.

According to Yonhap News Agency, Samsung's mobile, semiconductor, and medical equipment businesses will remain operational in China. Despite the withdrawal from the home appliance and TV sectors, Samsung has communicated to its vendors in China about its latest decision, emphasizing the company's ongoing commitment to other areas of its business.

The Korean tech giant's decision to exit these specific sectors in China comes as it faces increased costs amidst global uncertainties and mounting competition from Chinese firms. Last year, Samsung's sales unit in China reported a net profit of 168 billion won (approximately US$116 million), a significant decline from the previous year's net profit of 300 billion won.

Earlier, Samsung Electronics announced it was reviewing a potential business reorganization due to heightened competition in the home appliance sector and emerging tariff risks. In a related move, Samsung, recognized as the world's leading TV manufacturer, recently replaced its head of TV operations to better address these growing challenges both domestically and internationally.