Now Reading: Microsoft retreats from China but keeps window open
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Microsoft retreats from China but keeps window open
Microsoft has shut at least 15 branch offices and joint ventures in China over the past five years, pursuing a strategy of retreat, corporate filings show. The company considered leaving the market…
The Story in Brief
Microsoft has shut at least 15 branch offices and joint ventures in China over the past five years, pursuing a strategy of retreat, corporate filings show. The company considered leaving the market in 2023 due to geopolitical risks and low returns, five company sources told Reuters. China contributed just 1.5% of global revenue in 2024. However, Microsoft chose to stay because it serves Chinese firms like ByteDance that need Western tech for overseas operations, and to access China's engineering talent.
The Indian Opinion
The narrative that Western tech giants are fleeing China is oversimplified. Microsoft's retreat is real, 15 offices shut, but so is its profitable niche servicing Chinese companies with global ambitions, like ByteDance. The lazy story pits American capitalism against Chinese censorship, but the reality is a calibrated dance: Microsoft keeps a presence for talent and business, while complying with regulations Google could not. The real test is whether ByteDance, facing US crackdowns, continues buying Microsoft's cloud services.
Source: timesnownews.com
This story was synthesised by AI from the source linked above.
