Microsoft is expanding in China with more jobs and upgrades despite rising international...

midian182

Posts: 8,328   +103
Staff member
What just happened? The US government might be introducing more tech restrictions against China, but it seems the increased tensions between the countries aren't affecting American firms' expansion plans. Microsoft is one of these, having just confirmed that it will add another 1,000 workers to its Chinese operations and upgrade its campuses over the next few years.

Microsoft employs more than 9,000 people full-time in China, around 80% of whom are research and development specialists and engineering technicians. The company has announced that its recruitment drive will bring that number above 10,000 across the next year.

Microsoft's plans extend beyond adding more employees in China. The Windows maker, which has offices in 13 Chinese cities, will also upgrade its campuses in Beijing, Shanghai, and Suzhou over the next three to five years.

Related read: US-China semiconductor battle: Second and third order consequences

The announcement came on the thirtieth anniversary of Microsoft's entry into the Chinese market. "We will continue to strengthen our confidence and determination to develop in the Chinese market and expand investment in human resources, campuses, education, and the local ecosystem to find new opportunities in China, boosted by China's accelerated development of the digital economy," said Microsoft Greater China chairman and CEO, Hou Yang,

The news comes at a time when relations between the US and China are at their frostiest. Earlier this month, US officials instructed Nvidia and AMD to stop selling their high-performance AI-focused GPUs to China and Russia without a license. There are also US export bans and sanctions on a number of Chinese companies, such as Huawei, which has seen its smartphone business suffer enormously since losing access to American-made technologies. China has been a vocal opponent of the Chips Act, too. And then there Taiwan.

The announcement is good news for the Chinese economy, which, like the US, has been experiencing a downturn due to global uncertainty. The country has also been dealing with increased regulatory scrutiny. The situation has led to layoffs at large tech giants such as Tencent, Alibaba, and Xiaomi, mirroring those US firms that have also reduced staff numbers this year.

The expansion plans are a reaffirmation that American companies are not losing faith in China and scaling back investment in the country. Like Microsoft, Tesla is continuing its expansion in the Asian nation via the Shanghai Gigafactory (above), already the EV-makers largest facility in the world.

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netman

Posts: 838   +380
"American companies haven't lost faith in China"

It's not the question of faith, rather the ridiculous US government direction for US companies to pack and leave China for other countries so China can not surpass US economically...!
 

p51d007

Posts: 3,375   +3,047
Corporations will always go to where the cheapest labour is, the political situation be damned.

EXACTLY!
After WW2, Economic growth in America BOOMED! Then, as employees started to demanding higher wages, American corporations looked to Japan for cheaper labor (I remember in the 60's people would say yuck, it says Made in Japan, it's junk).
As the Japanese workforce developed, their citizens started demanding more money to improve their lives, so corporations shifted to Taiwan, South Korea. As their workforce developed, their people as everyone in the past started demanding more in wages, so the corporations looked to China. Now than the Chinese government (not so much their "subjects") are demanding more money, along with the political fallout, corporations are moving towards India and others.
It's how the corporate game has been played for many many years.
Gotta keep those profits high to keep the stock prices up, so the CEO's can make a few more billion dollars.
 

Bluescreendeath

Posts: 328   +499
Comrade Bill is a lover of the communist system of government!
Bill stepped down from running Microsoft back in 2014, and China stopped being USSR style state socialist back in the early 1980s when they adopted capitalism and created free market zones for parts of their country & economy.
 

Duke9192

Posts: 59   +80
That's capitalism for ya! It's the reason why our world is so screwed-up right now.
Care to elaborate? I kinda like the idea of owning property, natural economic forces, the right to pursue my own destiny, limited government intrusion, you know, capitalist stuff. I will say government manipulation and socio-economic pandering is at an all time high, so if you think the world is getting better then be my guest.
 

Bluescreendeath

Posts: 328   +499
Care to elaborate? I kinda like the idea of owning property, natural economic forces, the right to pursue my own destiny, limited government intrusion, you know, capitalist stuff. I will say government manipulation and socio-economic pandering is at an all time high, so if you think the world is getting better then be my guest.
Capitalism is generally the private ownership of property and production. There are certain variations of capitalism such as monopolistic/oligopolistic capitalism and state capitalism that involve unnatural economic forces, destruction of self determination, encourage government intrusion, etc.
As for socio economic pandering, if anything, that helps private companies sell more stuff to their targeted audiences and to expand their market base...so that is a natural part of capitalism.
 

terzaerian

Posts: 1,517   +2,259
Corporations will always go to where the cheapest labour is, the political situation be damned.
It can be both. Government interference and regulation can drive up the cost of labor, and the players that are big enough to outsource will do so, and then use the advantage to crush the players that aren't big enough to do so.