Microsoft requests Chinese workers to relocate
In a significant move reflecting growing tensions between the U.S. and China, tech giant Microsoft has requested its China-based staff to relocate outside the country. The decision announced on Thursday highlights the recent rows between the U.S. and China over the application and innovation of AI technologies, particularly for military uses.
Experts believe that concerns over China obtaining newly developed AI technology have prompted the U.S. to pressure several American companies operating in China to limit external access to AI technology. The race for cutting-edge technology has once again strained Sino-U.S. relations as of late.
According to the initial report by the Wall Street Journal, Microsoft has asked over 700 China-based employees working in cloud computing, machine learning, and AI development to relocate out of the country.
A Microsoft spokesperson said, “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 subset of employees”.
Of the 700 employees urged to relocate, most are engineers. The options for transfer locations include the U.S, New Zealand, Ireland and Australia.
Microsoft decision is a precursor of worsening Sino-U.S. relations
Sino-U.S. relations have taken a significant nosedive in recent years with the two countries entering a cold-war like phase, competing in various fields. The advancement of information technologies like AI, with its revolutionary applications have also reached new criticality.
Recently US President Joe Biden hiked taxes on many Chinese imports like electric car batteries, semi-conductors, medical products and computer chips over China’s support for Russia in the Ukraine war.
Experts allege that the recent meeting between Russian President Vladimir Putin and Chinese President Xi-Jinping in Beijing on Thursday prompted the Biden administration to increase monetary pressure on Chinese imports, especially at a time when China relies heavily on foreign exports to rejuvenate its sluggish economy.
Reports also suggest that the U.S. Chamber of Commerce is planning to introduce new regulatory restrictions to prevent China from obtaining closed-sourced AI models that can be exploited for military applications.
Despite the relocation announcement it is highly unlikely that Microsoft will leave China altogether as the nation has hosted many significant Microsoft facilities since the last 3 decades.
Power struggle between China and U.S. is giving way to a new race
China condemned the U.S. for maintaining an unfair hegemony on world affairs during the meeting between President Xi and President Putin earlier this week. The two leaders had pledged a “new era” of cooperation between the two nations, that many experts see as a potential defiance against the U.S.
With the advancement of Ai technologies, it is very important for China to maintain its supremacy in cutting age innovation if it wants to replace U.S. as the world’s new superpower. With over 75% of global tech companies based in China, the U.S. fears that its new innovations may be obtained by China to exploit for military uses.
Since the beginning of 2022, the U.S. has led the western nations to enforce stringent trade restrictions on China, Russia and Turkey to force their hand into stopping all conflicts with U.S. allies (Ukraine, Israel).
This trend has been observed in cases of Ukraine, Taiwan, Israel and several other nations around the world that represent U.S. interests.
Microsoft’s staff relocation announcements are an indicator of U.S attempts to prevent China from obtaining its cutting age innovations.
