Technology
Thursday, November 16th, 2023 3:02 pm EDT
Key Points
- Global Focus, Not on China Domestic Market: Microsoft CEO Satya Nadella emphasized that Microsoft’s primary focus is on the global market excluding China. Despite having notable Chinese customers with operations outside China, Nadella clarified that the company is not concentrated on China as a domestic market.
- AI Services to Chinese Multinationals: Nadella mentioned that many Chinese multinationals operating outside of China are significant customers for Microsoft’s artificial intelligence (AI) services. Microsoft provides AI services to companies such as electric vehicle maker Li Auto and consumer electronics company Xiaomi.
- Challenges and Compliance in China: Microsoft has a more visible presence in China compared to some of its peers, with operations dating back to 1992. However, Nadella acknowledged that the U.S. government imposes important restrictions on doing business in China, and Microsoft will be compliant with the decisions made by the U.S. government. Despite challenges, Microsoft does not see China as a major issue for its business, with the majority of its sales coming from the U.S., Europe, and the rest of Asia. The company depends on China for manufacturing, particularly for its Surface PCs. Recent challenges include LinkedIn’s cessation of its InCareer app in mainland China, citing fierce competition and a challenging economic climate.
Microsoft CEO Satya Nadella stated that the company is not primarily focused on the Chinese domestic market, despite having significant Chinese customers operating outside of China. Nadella mentioned that Microsoft is more focused on the global market, excluding China. He acknowledged that many Chinese multinational companies operating outside China are significant customers for Microsoft’s artificial intelligence (AI) services.
While Microsoft has notable Chinese customers like Li Auto and Xiaomi, Nadella emphasized that the company is subject to important restrictions imposed by the U.S. government regarding business operations in China. The U.S. and China have a complex business relationship, especially in technology sectors like networking equipment, semiconductors, and internet services.
Although Microsoft has a more visible presence in China compared to some of its peers, Nadella highlighted that the majority of Microsoft’s business is in the United States, Europe, and the rest of Asia. He noted that, aside from potential disruptions to the supply chain, Microsoft doesn’t see China as a major issue for its business.
Nadella’s comments come in the context of strained relations between the U.S. and China, with the U.S. Commerce Department imposing additional export restrictions on AI chips for China. Microsoft, like other tech companies, navigates challenges and compliance issues associated with operating in China while adhering to U.S. government policies.
For the full original article on CNBC, please click here: https://www.cnbc.com/2023/11/15/microsoft-ceo-nadella-says-company-isnt-focused-on-china-domestically.html
