Exclusive-Microsoft retreats in China, but AI boom helps it keep a window open

Microsoft nearly quit China — it’s shut ~15 offices and even considered exiting in 2023, but ultimately decided to stay to protect customers and talent.
Its biggest China-linked business is helping firms like ByteDance go global (via Azure and Western AI access), though China is a tiny slice of Microsoft’s revenue (~1.5%).
Geopolitics and rules are reshaping things: China favors domestic software, U.S. export controls limit some work, and Microsoft has moved research labs abroad and struggled to keep top engineers.