Microsoft President Warns of China's Rapid Tech Advancements, Emphasizes Need for US-Europe Collaboration

Microsoft President Warns Beijing's Tech Progress Is Catching Up With The West: 'People Who Don't Go To China Too Often Assume They're Behind' - Microsoft (NASDAQ:MSFT)

Microsoft MSFT President Brad Smith emphasized China's swift technological advancements, suggesting they are on par with Western nations. Smith made these remarks at the Web Summit tech conference in Lisbon. What Happened: Smith addressed the common misconception that China lags in technology, asserting that firsthand visits reveal substantial progress, CNBC reported on Wednesday. "I think one of the dangers, frankly, is that people who don't go to China too often assume that they're behind," he said. He also forecasted continued competition between Chinese and American tech companies and encouraged collaboration between U.S. and European firms to drive economic and technological growth, particularly in artificial intelligence. Despite ongoing U.S.-China tensions and tech export restrictions, Smith acknowledged China's unexpected tech achievements, such as Huawei's latest smartphone release. He noted that Microsoft's operations in China depend on approvals from both U.S. and Chinese governments. See Also: NetEase Games Executives Arrested In $139M Bribery, Money Laundering Scandal: Report (UPDATED) Smith concluded by highlighting the uncertain future of tech exchanges between the U.S. and China, especially with the transition between U.S. administrations. Why It Matters: Chinese and American Companies are navigating the tricky waters as political and economic tensions between the two nations increase. Earlier this year, Microsoft urged its China-based AI team to consider relocating due to escalating tensions. The relocation initiative targeted employees involved in machine learning and cloud computing tasks. Additionally, Microsoft's $1.5 billion investment in UAE-based AI firm G42, which has historical ties to China, has raised concerns among Republican lawmakers. They have requested an intelligence assessment of the deal from the Biden administration. This highlights the complex landscape of tech collaborations and geopolitical considerations. Read Next: Xi Jinping Courts US Allies To Counter Trump's Trade Threats: Report Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors. Image via Shutterstock Market News and Data brought to you by Benzinga APIs

Microsoft's president has a warning about China

Microsoft and Biden announced a $3 billion AI investment in a key battleground state "I think one of the dangers, frankly, is that people who don't go to China too often assume that they're behind," Smith said at the Web Summit tech conference in Lisbon, Portugal. "But when you go there, you're impressed by how much they're doing." Asked about U.S.-China trade and technology transfers amid the transition from President Joe Biden to President-elect Donald Trump, Smith said it was too early to assess the impact. As a U.S.-based company, Microsoft "can do business in China only when we are offering a service that the Chinese government wants to have there, and the U.S. government wants us to bring there," Smith said. Smith noted that data centers supporting international firms like Mercedes (MBGAF-2.27%), Siemens (SIEGY-0.90%), Starbucks (SBUX-0.18%) or General Motors (GM+1.10%) have "a level of comfort" with regulators, while consumer services face more restrictions. "I suspect we're going to continue to live in a world where some technology will move to China, others will not, and we're not going to be the ones who decide," Smith said. "We have to navigate this world -- it's the two governments that will decide." Companies in the U.S. and China will continue competing with technology and artificial intelligence now and in "the distant future," Smith said, adding that companies in the U.S. and Europe should collaborate to grow economies and bring technology like AI to the world together.