Shira Ovide is a Bloomberg Gadfly columnist covering technology. She previously was a reporter for the Wall Street Journal.

Uber found out what many other U.S. tech companies realized long ago: China is an alluring trap. Most American web companies including Google, Facebook and Amazon are either banned from China or have flopped there. And their odds of success are only getting slimmer.

China's internet powerhouses are too huge to dislodge, the government tilts the rules to favor domestic web companies, and Chinese companies are producing formidable technology tailored to local tastes. It might be time for U.S. web companies to permanently give up on China. Click the video below for more.

Uber Proves Why Silicon Valley Should Keep Out of China

This column does not necessarily reflect the opinion of Bloomberg LP and its owners.

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Shira Ovide in New York at

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Daniel Niemi at