Microsoft's joint venture Wicresoft to halt China operations
What's the story
Microsoft's joint venture, Wicresoft, will cease its operations in China from tomorrow.
The decision will affect some 2,000 employees, Chinese media outlet Caijing reported.
The move comes as part of Microsoft's strategy to stop outsourcing after-sales support in China to Wicresoft.
However, it is still not clear how Microsoft plans to continue servicing users of its Windows and Office products based in China after this.
Company profile
Wicresoft's history and global presence
Founded in 2002, Shanghai Wicresoft Co. Ltd. was Microsoft's first joint venture company in China.
The IT services provider also operates across the US, Europe, and Japan with over 10,000 employees worldwide, according to information available on Wicresoft's website.
Specific information about Wicresoft's future plans following this significant development in its home country remains unclear.
Market exit
Microsoft's withdrawal amid geopolitical tensions
Microsoft's pullback from the China market seems to be driven by rising political and trade tensions between Washington and Beijing.
The company is also facing tough competition from local players such as Kingsoft.
This move comes months after the company shuttered a Shanghai-based lab working on Internet of Things and artificial intelligence (AI) technologies, further emphasizing Microsoft's strategic shift amid changing global dynamics.