Microsoft has spent years retreating from China. AI may be a reason it does not leave entirely.
Reuters reports that the company has closed at least 15 offices and joint ventures in China and came close to executing a complete exit in 2023, as geopolitical tensions, tighter Chinese technology policies, and U.S. export controls have made the market increasingly difficult to serve.
However, Microsoft has found a narrower opportunity in the same market: selling Azure cloud and AI services to Chinese companies with international operations, including ByteDance.
That shift changes what Microsoft’s China strategy looks like. Rather than trying to…
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