Microsoft's TikTok Bid Spotlights Windows Maker's History With China

Microsoft commands a sizeable presence in China, unlike fellow US tech giants such as Facebook and Google.

Advertisement
By Reuters | Updated: 10 August 2020 14:04 IST
Highlights
  • China accounts for over $2 billion in annual revenue for Microsoft
  • Microsoft employs roughly 6,000 people in the country
  • Microsoft operates both its Bing search engine and LinkedIn in China

Microsoft Corp has emerged as the most likely buyer of the US operations of TikTok, the popular Chinese short-video app that US President Donald Trump is preparing to effectively ban on national security grounds.

A deal would be in line with Microsoft's stance toward China where the firm has a sizeable presence - unlike fellow US tech heavyweights such as Facebook and Alphabet's Google which appear to have given up on China's consumer-facing market with its miscellany of government strictures.

The country accounts for over $2 billion (roughly Rs. 14,983 crores) in annual revenue, Microsoft President Brad Smith said earlier this year.

Advertisement

What does Microsoft do in China?

Microsoft employs roughly 6,000 people in the country, with offices in Shanghai, Beijing, and Suzhou.

Advertisement

Its flagship Windows operating system is widely used, though revenue has long been crimped by piracy. In recent years the firm has pushed its Azure cloud computing product, launched in 2013 via a partnership with local data service company 21Vianet.

China's cyber-security law limits Microsoft to providing Azure's software and services while 21Vianet runs associated data centres. It is a small player in a sector dominated by local providers Alibaba Group Holding, Baidu, Tencent Holdings, and Huawei Technologies Co.

Advertisement

Microsoft operates both its Bing search engine and LinkedIn social network in China, though again is a small player compared with local giants.

Its most important China operation is arguably the Microsoft Research Asia, famous as a leader in artificial intelligence (AI).

Advertisement

Founded in 1998 with help from renowned Taiwanese-American AI scientist Kaifu Lee - who went on to lead Google's China office - the lab has produced alumni who went on to become executives at TikTok owner ByteDance, Baidu, Xiaomi, and Chinese facial recognition unicorns.

Does Microsoft self-censor in China?

Bing and LinkedIn in China appear similar to their global counterparts but Microsoft censors search results and content the Chinese government considers sensitive.

Upon LinkedIn's China launch in 2014, two years before the company was bought by Microsoft, then-Chief Executive Jeff Weiner said censoring content would be "necessary" for the firm to grow in the country.

In 2019, free speech advocates criticised LinkedIn's position on censorship after human rights activist Zhou Fengsuo said his profile was not viewable in China. LinkedIn blamed an "error" and restored its visibility.

Software development website GitHub, which Microsoft purchased in 2019, is also accessible from China. The site, a coding repository, has been used by activists in China to preserve internet content before authorities censor the source.

Has Microsoft had scrapes with China's government?

Microsoft has bemoaned rampant piracy of Windows in China for decades and has occasionally filed lawsuits and complaints even against state-backed companies to address its concerns.

Its most notable tussle with the government was in 2014 when authorities raided four Microsoft offices demanding access to contracts and other information as part of an anti-trust investigation.

The same year, the government called on all agencies to ban the purchase of Windows 8 citing security reasons.

Microsoft eventually released a "China Government" edition of Windows 10 following a joint venture formed in 2015 with state-owned China Electronics Technology Corp.

What about Bill Gates?

Microsoft co-founder Bill Gates has spoken in mostly positive terms about China in recent years. In November, he held a public meeting with Peng Liyuan, wife of President Xi Jinping.

Also late last year, Gates criticised the US government's restrictions on telecommunications equipment maker Huawei and spoke about sharing Windows source code with China's government which aided official acceptance of the software in the country.

He has praised China's response to COVID-19, which earned him public thanks from Xi, and the Bill & Melinda Gates Foundation has donated $5 million (roughly Rs. 37.44 crores) to China for COVID-19 relief.

The foundation is one of few overseas charities or non-governmental organisations to maintain operations in China, where it has worked with the government and academic institutions against diseases such as malaria and tuberculosis.

© Thomson Reuters 2020


Is Nord the iPhone SE of the OnePlus world? We discussed this on Orbital, our weekly technology podcast, which you can subscribe to via Apple Podcasts, Google Podcasts, or RSS, download the episode, or just hit the play button below.

Affiliate links may be automatically generated - see our ethics statement for details.
 

Get your daily dose of tech news, reviews, and insights, in under 80 characters on Gadgets 360 Turbo. Connect with fellow tech lovers on our Forum. Follow us on X, Facebook, WhatsApp, Threads and Google News for instant updates. Catch all the action on our YouTube channel.

Advertisement

Related Stories

Popular Mobile Brands
  1. Oppo Find X9 Series Launch Today: Know Price, Specs and More
  2. Lava Agni 4 Demo Campaign Lets Buyers Experience the Phone Before Buying
  3. OnePlus 15R India Launch Has Officially Been Teased
  4. Oppo Reno 15 Series Launched With Up To 6,500mAh Battery: See Price, Features
  5. Oppo Reno 15C Launch Teased; Slated to Debut in China in December
  6. Here's When the Nothing Phone 3a Lite Will Launch in India
  7. Google's Latest Weather Forecasting AI Model Is Available to Users
  8. These Samsung Galaxy S26 Models Might Be Slimmer and Lighter, Tipster Says
  1. Google DeepMind Releases WeatherNext 2, a Forecasting AI Model for Users
  2. Oppo Reno 15C Launch Teased After Company Unveils Reno 15 Series; Will Debut in China in December
  3. Samsung Galaxy S26, Galaxy S26 Ultra to Be Slimmer and Lighter Than Their Predecessors, Tipster Claims
  4. Apple's iOS 26.2 Beta 3 Rolled Out With AirDrop Upgrades, Liquid Glass Tweaks and More
  5. Apple Watch Series 12 Tipped to Come With Minimal Design Changes; Redesigned Model May Debut in 2028
  6. Lava Agni 4 Home Demo Campaign Lets Buyers Experience the Phone Before Purchase
  7. OnePlus 15R Teased to Launch in India Soon; Colourways Revealed Ahead of Launch
  8. Oppo Find X9 Series Launching Today: Know Price in India, Features, Specifications and More
  9. Astronomers Uncover the Vast Greater Pleiades Complex with 3,000 Hidden Stars
  10. Astronomers Capture First-Ever Early Snapshot of Supernova Shock Wave Using ESO’s VLT
Gadgets 360 is available in
Download Our Apps
Available in Hindi
© Copyright Red Pixels Ventures Limited 2025. All rights reserved.