Microsoft Considers Leaving China Amid Low Earnings and Geopolitical Risks

According to Reuters, in 2023, some Microsoft executives considered pulling out of China altogether because they felt that earnings were too low in the face of geopolitical risks. However, the company has not decided to leave China for the time being. The biggest blow to Microsoft has come from China's policies and US-China tensions. China has been promoting domestic software policy since 2017, and many government procurement guidelines have not prioritized Microsoft's software. On the other hand, the US's AI-based ByteDance and ByteDance bans on AI exports to China have made it difficult for Microsoft to re-enter China's cloud business.