Microsoft asks China-based employees to consider relocation

In response to increasing tensions between the United States and China over technology, Microsoft (MSFT.O) has asked some of its China-based employees to consider transferring outside the country.

The Wall Street Journal first reported that around 700 to 800 employees involved in machine learning and other work related to cloud computing have been approached about relocating.

A Microsoft spokesperson confirmed this move, stating that offering internal opportunities is a regular part of managing their global business.

The spokesperson emphasized that Microsoft remains committed to China and will continue to operate there and in other markets.

The employees, primarily engineers of Chinese nationality, were given the option to transfer to the United States, Ireland, Australia, and New Zealand.

This decision comes amid escalating tensions between the US and China. The Biden administration recently increased tariffs on various Chinese imports, including electric vehicle batteries, computer chips, and medical products.

Additionally, the US Commerce Department is reportedly considering new regulations to restrict the export of proprietary or closed-source AI models, further exacerbating the strained relationship between the two countries.