Microsoft Abandons China Amidst Growing Geopolitical Tensions

Microsoft is reportedly pulling out of China due to poor financial performance and increasing geopolitical tensions. According to sources consulted by Reuters, at least 15 of the company's branches and joint ventures in China have closed their doors.

In 2023, Microsoft considered withdrawing completely from the country due to low estimated profits from China, which accounted for only 1.5% of its annual total.

The decision comes as other US tech giants also reconsider their presence in China. Apple plans to manufacture most iPhones sold to US consumers in India by 2026, and Tesla has denied reports of spinning off its business in China.