Microsoft chief Brad Smith: We can do business in China only when ...

Microsoft's president and vice-chairman, Brad Smith, cautioned the West against assuming China is lagging behind in technological development.

Speaking recentky at the Web Summit tech conference in Lisbon, Portugal, Smith told CNBC that China is either close to or has even surpassed Western nations in many technological areas.

Microsoft’s Brad Smith said that “in many ways,” China is close to or is even catching up on technology.

When asked about the potential impact of the US presidential transition on trade and technology transfers with China after Donald Trump taking over as the US president, Smith acknowledged the uncertainty.

He emphasized that Microsoft's operations in China are subject to the approval of both the Chinese and the US governments.

While certain areas, like data centers supporting foreign companies, seem to have a higher level of acceptance, consumer services face significant restrictions.

American companies not really welcome in .

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“The truth is, as an American technology company, we 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,” he said, adding, “And in some cases they look at, say, a data center to support a Mercedes or a Siemens or a Starbucks or a General Motors — there seems to be a level of comfort.

In consumer services, not really.

”Microsoft has maintained a presence in China since 1992, including operating its largest R&D center outside the U.

S.

Although Microsoft CEO Satya Nadella has stated that the company isn't focused on China as a domestic market, it continues to provide services to Chinese companies and has a more visible presence than many other U.

S.

tech giants.

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