Microsoft has reportedly asked 700 to 800 of its China-based employees to consider relocating outside the country in response to escalating tensions between the United States and China.
The unprecedented decision comes amid strained Sino-US relations. With a series of sanctions, Washington has been aiming to limit Beijing's access to advanced technologies, particularly artificial intelligence (AI).
Reports: Microsoft Asks Hundreds of China Staff to Relocate
According to Reuters, Microsoft is targeting employees involved in machine learning and other cloud computing-related work for potential relocation.
These employees, primarily engineers of Chinese nationality, have been offered the option to transfer to locations such as the United States, Ireland, Australia, and New Zealand. However, the company has not disclosed the exact number of employees contacted in this process.
According to a Microsoft spokesperson speaking to Reuters, the company considers offering internal opportunities a routine aspect of managing its global operations. Despite recent developments, Microsoft remains committed to operating in China and other markets.
The Microsoft logo is seen at its local headquarters in Beijing on July 20, 2021, the day after the US accused Beijing of carrying out cyber attack on Microsoft and charged four Chinese nationals over "malicious" hack in March. Photo by NOEL CELIS/AFP via Getty Images
Increased US Tariffs on China Tech Imports
The reported relocation request from Microsoft follows a series of actions by the US government aimed at restricting Chinese access to critical technologies.
President Joe Biden's administration recently announced massive tariff increases on various Chinese imports, including electric vehicle batteries, computer chips, and medical products. These tariffs total approximately $18 billion annually.
President Biden's announcement detailed specific tariff increases, including a substantial hike from 27.5% to 100% on Chinese electric vehicles (EVs), doubling tariffs on semiconductors from 25% to 50% by 2025, and other increases on targeted imports such as steel, aluminum, legacy semiconductors, and battery components.
The tariff regime proposed by President Biden is staggered, with changes set to take effect gradually from 2024 to 2026, allowing for a more strategic implementation focusing on industries perceived as threats to US interests.
Furthermore, the US Commerce Department is reportedly considering new regulations to restrict the export of proprietary artificial intelligence models, seen as crucial for maintaining a competitive edge in AI development.
Microsoft Denies Asking Staff to Relocate: Chinese Media
In response to reports about the relocation request, Microsoft has denied rumors of a collective relocation of its artificial intelligence team from China to the United States or Australia.
The company clarified that only a small number of employees in China have been offered the opportunity to choose international rotations, and rumors suggesting otherwise are inaccurate.
According to China Daily, Microsoft emphasized that the rumors of a "collective relocation to the US" were exaggerated. The company reiterated that employees in China have the option to either opt for the rotation or continue in their current positions.
