14 DAY TRIAL // Microsoft is currently trying to purchase Internet sensation TikTok, a service owned by China-based ByteDance and which United States President Donald Trump threatened he would ban unless it steps under American ownership.
This rather controversial approach, which has already stirred China’s anger, mixed with a recent set of proposed changes to Microsoft’s services agreement in the country made believe that the software giant is getting ready to say goodbye to the local market.
The new terms, which are projected to come into effect on October 1, apparently led to speculation that Microsoft would be ready to leave China if the company fails to meet local requirements, such as complying with government orders.
But in a new statement for the South China Morning Post, Microsoft explains this is simply not true, as a change a of terms has nothing to do with a possible departure from the country. The software giant is still fully committed to China, and this is no surprise given this is one of its largest markets.
“Rumors circulated by some social media about Microsoft’s global update of its services agreement are not true,” Microsoft said in a statement on Monday. “Our commitment to provide services to Chinese users remains firmly unchanged.”
The TikTok case
On the other hand, it’s not a secret that the TikTok takeover could cause more problems for American companies in general, and Microsoft in particular, in the Chinese market.
China warned that it doesn’t agree with the approach that the United States is using to take over TikTok, suggesting that some retaliation is possible if the deal is completed.
Many believe that Apple could be one possible target, albeit for now, no sanctions are official. Previously, it was speculated that China also wanted to announce a series of sanctions against Apple following the trade war with the United States and the Huawei ban that blocked the company from working with American firms.