Microsoft asks China-based staff to relocate amid escalating US-Sino tensions
What's the story
According to The Wall Street Journal, Microsoft has proposed a relocation plan for approximately 700 to 800 of its China-based employees.
The employees, primarily Chinese engineers working in the cloud-computing and artificial intelligence sectors, were given options to transfer to countries including the US, Ireland, Australia, and New Zealand.
This proposal comes amidst escalating US-China tensions and increased scrutiny on Chinese imports by the Biden administration.
Trade scrutiny
US-China trade tensions impact tech sector
The Biden administration has intensified its scrutiny on various sectors of Chinese imports, including electric vehicle batteries, computer chips, and medical products.
The US Commerce Department is also reportedly considering a new regulatory push to restrict the export of proprietary or closed source AI models.
These are AI models whose software and data are kept confidential.
This move could potentially impact tech companies like Microsoft operating in China.
Continued operations
Microsoft reaffirms commitment to China despite relocation proposal
Despite the proposed employee transfers, Microsoft has reaffirmed its commitment to China.
A company spokesperson confirmed that an optional internal transfer opportunity was shared with a subset of employees, adding that providing internal opportunities is part of Microsoft's global business strategy.
The spokesperson further emphasized that Microsoft remains committed to the region and will continue to operate in China.