{
  "id": 3247341,
  "title": "Microsoft to China: So long, it’s been good to know ya….",
  "url": "https://urgent.news/2026/08/25/microsoft-to-china-so-long-its-been-good-to-know-ya",
  "topic": "tech",
  "section": "Tech",
  "published": "2026-08-25T11:00:00.000Z",
  "source": {
    "name": "Computerworld",
    "slug": "computerworld",
    "url": "https://www.computerworld.com/article/4213153/microsoft-to-china-so-long-its-been-good-to-know-ya.html"
  },
  "original_language": "en",
  "account": "Microsoft has decided to end its relationship with China, having previously been bullish on the market. The company closed 15 offices and joint ventures in China over the past five years, laying off an estimated 2,000 employees in the process. Microsoft has also moved much of its manufacturing out of the country, with Surface, Xbox, and hardware production no longer taking place in China. Additionally, the company has reduced its Chinese workforce, cutting around 200 to 400 Azure cloud jobs in 2026.\n\nMicrosoft's decision to withdraw from China is a result of geopolitical tensions and a deteriorating business climate between the two nations. The relationship started to sour in the mid-2010s, as China became increasingly skeptical of US and western tech firms, believing they were engaging in espionage. Microsoft built a Windows version specifically for the Chinese government, but it failed to gain much traction. In 2021, Microsoft closed LinkedIn in China after China imposed stricter censorship demands.\n\nDespite claims that the company is engaged in a \"strategy of retreat,\" Microsoft officially denies that it is backing away from China. Revenue from China only makes up about 1.5% of the company's total revenue, and this figure is likely even lower now. One potential bright spot for Microsoft in China is its Azure cloud services, which provide AI infrastructure to Chinese companies like ByteDance and Shein, but this could be at risk due to more powerful AI models emerging from China.\n\nIn the future, Microsoft is expected to gradually close more of its Chinese operations, with Azure eventually being replaced by Chinese home-grown technology. The shrinking income from China will likely lead to even more significant reductions in the company's overall earnings. Ultimately, this move signals a positive outcome for Microsoft, as it allows the company to distance itself from Chinese censorship demands and establish a more independent technological presence.",
  "summary": "Once upon a time Microsoft was bullish on China. Back in early 2010, when Steve Ballmer was CEO and Bill Gates was Chairman, Google was threatening to pull out of China because of Chinese censorship and because of what the company called Chinese government-sponsored cyberattacks. Google wasn’t alone. Other tech companies — as well as politicians like then-House Speaker Nancy Pelosi — were saying…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}