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

Microsoft TikTok US Acquisition: Deal Talks Draw Criticism in China


Microsoft Corp has emerged because the almost certainly purchaser of the US operations of TikTok, the favored Chinese short-video app that US President Donald Trump is getting ready to successfully ban on nationwide safety grounds.

A deal can be in keeping with Microsoft’s stance towards China the place the agency has a sizeable presence – in contrast to fellow US tech heavyweights equivalent to Facebook and Alphabet’s Google which seem to have given up on China’s consumer-facing market with its miscellany of presidency strictures.

The nation accounts for over $2 billion (roughly Rs. 14,983 crores) in annual income, Microsoft President Brad Smith stated earlier this 12 months.

What does Microsoft do in China?

Microsoft employs roughly 6,000 individuals within the nation, with workplaces in Shanghai, Beijing, and Suzhou.

Its flagship Windows working system is extensively used, although income has lengthy been crimped by piracy. In latest years the agency has pushed its Azure cloud computing product, launched in 2013 by way of a partnership with native knowledge service firm 21Vianet.

China’s cyber-security legislation limits Microsoft to offering Azure’s software program and providers whereas 21Vianet runs related knowledge centres. It is a small participant in a sector dominated by native suppliers Alibaba Group Holding, Baidu, Tencent Holdings, and Huawei Technologies Co.

Microsoft operates each its Bing search engine and LinkedIn social community in China, although once more is a small participant in contrast with native giants.

Its most essential China operation is arguably the Microsoft Research Asia, well-known as a pacesetter in artificial intelligence (AI).

Founded in 1998 with assist from famend Taiwanese-American AI scientist Kaifu Lee – who went on to steer Google’s China workplace – the lab has produced alumni who went on to change into executives at TikTok proprietor ByteDance, Baidu, Xiaomi, and Chinese facial recognition unicorns.

Does Microsoft self-censor in China?

Bing and LinkedIn in China seem much like their international counterparts however Microsoft censors search outcomes and content material the Chinese authorities considers delicate.

Upon LinkedIn’s China launch in 2014, two years earlier than the corporate was purchased by Microsoft, then-Chief Executive Jeff Weiner stated censoring content material can be “necessary” for the agency to develop within the nation.

In 2019, free speech advocates criticised LinkedIn’s place on censorship after human rights activist Zhou Fengsuo stated his profile was not viewable in China. LinkedIn blamed an “error” and restored its visibility.

Software improvement web site GitHub, which Microsoft bought in 2019, can be accessible from China. The website, a coding repository, has been utilized by activists in China to protect web content material earlier than authorities censor the supply.

Has Microsoft had scrapes with China’s authorities?

Microsoft has bemoaned rampant piracy of Windows in China for many years and has sometimes filed lawsuits and complaints even in opposition to state-backed firms to handle its considerations.

Its most notable tussle with the federal government was in 2014 when authorities raided 4 Microsoft workplaces demanding entry to contracts and different data as a part of an anti-trust investigation.

The identical 12 months, the federal government known as on all companies to ban the acquisition of Windows eight citing safety causes.

Microsoft ultimately launched a “China Government” version of Windows 10 following a three way partnership fashioned in 2015 with state-owned China Electronics Technology Corp.

What about Bill Gates?

Microsoft co-founder Bill Gates has spoken in largely constructive phrases about China in recent times. In November, he held a public assembly with Peng Liyuan, spouse of President Xi Jinping.

Also late final 12 months, Gates criticised the US authorities’s restrictions on telecommunications tools maker Huawei and spoke about sharing Windows supply code with China’s authorities which aided official acceptance of the software program within the nation.

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 aid.

The basis is certainly one of few abroad charities or non-governmental organisations to take care of operations in China, the place it has labored with the federal government and educational establishments in opposition to illnesses equivalent to malaria and tuberculosis.

© Thomson Reuters 2020

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