Microsoft requests specific employees in China to relocate to different nations.
As relations between Beijing and Washington worsen over technologies like artificial intelligence (AI) and clean energy, Microsoft staff, predominantly those working on cloud computing, have been given the option to move to the United States, Australia, or Ireland, among other countries according to a report in The Paper.
The Wall Street Journal reported on Thursday that Microsoft requested around 800 employees, mostly engineers with Chinese nationality working on cloud computing and AI, to consider relocating. This comes on the back of a report last year by the Journal that suggested the Biden administration was preparing to restrict Chinese firms' access to US cloud services.
CNN was unable to obtain a comment from Microsoft at the time of publication.
In a statement reported by Reuters, Microsoft said offering internal opportunities for some employees is part of their regular business practice, and they reaffirmed their commitment to China.
Microsoft established a presence in China in 1992 and for many years relied on its influential Beijing-based research lab, Microsoft Research Lab Asia, to help them expand their influence.
One employee described the confusion surrounding the situation, stating that the affected workers have only been given a month to make a decision.
Yicai, a Chinese government-controlled financial media outlet, mentioned that more than 100 employees were affected and that they also had the option not to move.
These reports surfaced during a week in which President Joe Biden introduced tariffs on $18 billion worth of Chinese-made electric vehicles and various other products, claiming his actions were necessary to prevent unfair competition from China causing irreparable damage to American industries.
The tech war between the two economic giants has been escalating for years. In October, the Biden administration placed restrictions on the types of semiconductors American companies could sell to China.
Lately, the US has also enlisted the support of its allies in Europe and Asia to prevent sales of advanced chipmaking equipment to China.
China has responded by implementing its own restrictions on the export of germanium and gallium, which are two essential elements for manufacturing semiconductors.
Hassan Tayir and Juliana Liu contributed to this report.
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In response to geopolitical tensions surrounding technology, Microsoft has presented relocation options to its cloud computing and AI specialists, primarily based in China, allowing them to transfer to the United States, Australia, or Ireland. This business decision was made to leverage opportunities outside of China due to the ongoing tech conflict between the two economic powerhouses.
Source: edition.cnn.com
