Microsoft Asks China-Based Employees To Relocate Over Geopolitical Concerns

Microsoft is asking hundreds of employees running its artificial intelligence and cloud computing operations in China to relocate out of the country. Learn more about the development and the influence of geopolitics on the tech industry.

May 16, 2024

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  • Microsoft has asked around 700 of its workers in cloud computing and AI departments in China to consider relocating to other countries.
  • Geopolitical relations between China and the U.S. have become increasingly strained over critical technologies such as semiconductors and artificial intelligence.

Microsoft is asking around 700 China-based employees to consider moving out of the country. The move comes in light of the increasingly strained relationship between the U.S. and China regarding sensitive technologies such as semiconductors and artificial intelligence. The Microsoft employees impacted by the decision work in machine learning and cloud computing departments.

On the other hand, Microsoft has stated that the move is part of the company’s program to provide employees with internal opportunities. The company reiterated its commitment to working in China and other regional markets. The Microsoft employees, who are largely of Chinese nationality, were offered options to move to either the U.S., Australia, Ireland, or New Zealand.

See More: Apple and OpenAI Discuss Integration of ChatGPT With iOS18

Recent months have seen a significant downward spiral in the U.S.-China relationship, with President Biden’s administration driving up tariffs on several Chinese imports, including medical products, electric vehicle components, and computer chips. The U.S. government has also restricted China’s capability to purchase advanced chips and chip production equipment, which is key for artificial intelligence advancements.

The U.S. Department of Commerce is also considering restrictions on exports of proprietary artificial intelligence models. Microsoft employs around 7,000 workers in the Asia-Pacific region for research and development positions, many of whom are based in China. Few government restrictions exist on companies like Microsoft to prevent the sale of AI model services to foreign bodies, raising concerns about the military use of such technologies. However, a complete shift of Microsoft out of China seems unlikely as the company has deeply set roots in the country for the past three decades.

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Anuj Mudaliar
Anuj Mudaliar

Assistant Editor - Tech, SWZD

Anuj Mudaliar is a content development professional with a keen interest in emerging technologies, particularly advances in AI. As a tech editor for Spiceworks, Anuj covers many topics, including cloud, cybersecurity, emerging tech innovation, AI, and hardware. When not at work, he spends his time outdoors - trekking, camping, and stargazing. He is also interested in cooking and experiencing cuisine from around the world.
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