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) 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.

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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.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

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