US tech companies have a rather sensitive relationship with China. Take the case of Apple. The Tim Cook-led company is one of the few companies that has a solid equation with China. The likes of Meta and Microsoft don’t operate in the company due to a variety of reasons. Microsoft CEO Satya Nadellahas come out and said that he is fine with how things are with China.In an interview with CNBC, Nadella spoke about hownational security is one of the reasons, Microsoft is happy with the status quo. “It’s clear that the United States has a particular set of policy decisions that they’re making on what it means to both have trade and competition and national security,” Nadella said. “Obviously, we are subject to what the USG decides” and will be compliant, he added.
The Microsoft CEO’s comments come after the US and China have had tense relations. The US has restrictions that deter US companies from trading with their Chinese counterparts. National security — something which Nadella pointed out — has often been cited as the key reason behind these restrictions.
Microsoft’s manufacturing reliance on China
Microsoft does operate some of its services and apps in the country. For example, Bing Search is operational in China. But Microsoft did shutter down LinkedIn in China two years ago. The company is still dependent on China for manufacturing its hardware devices. Nadella said that it’s not an issue that Microsoft doesn’t make money from China. “At least for us, today, the majority of our business is in the United States and in Europe and in the rest of Asia, and so we don’t see this as a major, major issue for us, quite frankly, other than any disruption to supply chain,” Nadella said.
Microsoft does business with Chinese companies, Nadella said. “A lot of the Chinese multinationals operating outside of China are our bigger AI customers, perhaps,” he revealed in the interview.
The Microsoft CEO’s comments come after the US and China have had tense relations. The US has restrictions that deter US companies from trading with their Chinese counterparts. National security — something which Nadella pointed out — has often been cited as the key reason behind these restrictions.
Microsoft’s manufacturing reliance on China
Microsoft does operate some of its services and apps in the country. For example, Bing Search is operational in China. But Microsoft did shutter down LinkedIn in China two years ago. The company is still dependent on China for manufacturing its hardware devices. Nadella said that it’s not an issue that Microsoft doesn’t make money from China. “At least for us, today, the majority of our business is in the United States and in Europe and in the rest of Asia, and so we don’t see this as a major, major issue for us, quite frankly, other than any disruption to supply chain,” Nadella said.
Microsoft does business with Chinese companies, Nadella said. “A lot of the Chinese multinationals operating outside of China are our bigger AI customers, perhaps,” he revealed in the interview.