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Microsoft Retreats in China, but AI Boom Helps It Keep a Window Open

The company closed at least 15 branch offices and joint ventures in five years as China’s procurement rules and U.S. export controls squeezed growth.

Summary by The Japan Times
Microsoft once regarded the idea of quitting China as unthinkable. But in the past five years, at least 15 branch offices and joint ventures in China have been shut.

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It has been confirmed that Microsoft (MS) has closed at least 15 branches and joint ventures in China over the past five years. The situation was so dire that the company even considered withdrawing from the Chinese market, due to a combination of the Chinese government's policies to foster domestic software and U.S. export restrictions on high-tech technology. Nevertheless, instead of leaving China, MS is focusing on shifting its business focus…

Over the past five years, Microsoft has closed at least 15 branches and joint ventures in China. In its 30-year history, Microsoft initially targeted Chinese government procurement and then ventured into the private market, but both attempts were repeatedly thwarted by Chinese political censorship and the US-China trade war. Reuters, citing sources, reported that Microsoft considered withdrawing from the Chinese market in 2023, but changed its m…

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조선일보 broke the news on Sunday, August 16, 2026.
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