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United States 'accuses' Microsoft of strengthening China with advanced chips and technology giant is forced to transfer 800 employees from Beijing to Ireland, Australia, New Zealand and the USA

Written by Flavia Marinho
Published 22/05/2024 às 07:01
United States - china - microsoft - chip - import tariff USA - tensions USA China
Microsoft asks employees in China to leave the country: The United States claims that chips strengthen the Asian country and is raising tariffs on several Chinese imports, including electric vehicle batteries, computer chips and medical products.

Microsoft asks employees in China to leave the country: The United States claims that chips strengthen the Asian country and is raising tariffs on several Chinese imports, including electric vehicle batteries, computer chips and medical products.

Microsoft (MSFT) announced that he is asking to some of its China-based employees to consider relocating out of the country. This decision comes amid increased tensions between the United States and China. Engineers of Chinese nationality, for the most part, were offered relocation alternatives to countries such as the USA, Ireland, Australia and New Zealand.

On Thursday (16), the company announced that this measure is a response to the growing restrictions imposed by Washington, which is trying to limit Beijing's access to advanced chips used in artificial intelligence applications, alleging the potential use of these chips to strengthen the China.

Under pressure from the United States Government, Microsoft asks hundreds of employees from China to move to Ireland, the USA, Australia and New Zealand

Microsoft maintains its commitment to the Chinese market and will continue its operations both in China

Approximately 700 to 800 Microsoft employees involved in machine learning and other areas related to cloud computing have been asked to consider relocating, according to the Wall Street Journal. The company justifies this action as part of its global business management strategy, offering internal transfer opportunities.

“Providing internal opportunities is a regular part of managing our global business. As part of this process, we shared an optional internal transfer opportunity with a group of employees,” said a Microsoft spokesperson, without specifying the exact number of employees affected by pressure from the United States. He reinforced that Microsoft maintains its commitment to the Chinese market and will continue its operations both in China and in other global markets.

Repercussions of US China Tensions

Employees at the software giant were given transfer options earlier this week, people familiar with the matter reported. This decision comes in a context of heightened trade tensions, with the United States government raising tariffs on several Chinese imports, including electric vehicle batteries, computer chips and medical products.

Earlier this month, Reuters reported that the United States Department of Commerce is considering implementing new regulations to restrict the export of proprietary or closed-source artificial intelligence models, increasing pressure on China.

Microsoft, by offering these relocation options, appears to be preparing for a scenario of greater technological separation between the world's two largest economies, reflecting the current complexities and challenges of global trade and technology relations regarding US-China tensions.

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Flavia Marinho

Flavia Marinho is a Production Engineer with a postgraduate degree in Electrical and Automation Engineering, with extensive experience in the onshore and offshore shipbuilding industry. In recent years, she has dedicated herself to writing articles for news websites in the areas of industry, oil and gas, energy, shipbuilding, geopolitics, jobs and courses, with more than 7 thousand articles published. Contact us to suggest an agenda, advertise job vacancies or advertise on our portal.

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