Microsoft is significantly reducing its presence in China after years marked by geopolitical tensions, increased regulatory restrictions, and growing competition from local companies. According to a Reuters report published by Infobae, the company has closed at least 15 offices and joint ventures in the country over the past five years.
The situation reached a point where some Microsoft executives considered completely leaving the Chinese market in 2023. However, the company decided to maintain operations because of business ties with Chinese companies that operate internationally and the significant technology talent available in the country.
China accounted for only 1.5% of Microsoft’s global revenue in 2024, while United States restrictions on advanced technologies and competition from Chinese artificial intelligence models have made expansion in the region more challenging.
Is Microsoft planning to completely leave China?
Not for now. The company is maintaining a presence, particularly in cloud services and artificial intelligence for Chinese businesses with international operations.
The report also indicates that Microsoft has moved some of its research talent to other countries due to technological restrictions.
