Microsoft President Warns the West Not to Underestimate China’s Tech Advancements

Microsoft President and Vice-Chairman Brad Smith cautioned the West against assuming that China lags in technology, noting that China is increasingly catching up with the U.S. and Europe in various tech domains. Speaking at the Web Summit tech conference in Lisbon, Portugal, Smith emphasized that those who rarely visit China often assume it is behind. “But when you go there, you’re impressed by how much they’re doing,” he told CNBC, adding that competition between Chinese and American tech companies is expected to extend well into the future.

The rivalry between the U.S. and China over tech dominance has intensified in recent years, with both nations imposing export controls on critical technologies. Last year, Huawei surprised the market with a smartphone showcasing 5G-like speeds, signaling a possible breakthrough in chip technology despite U.S. sanctions.

Smith highlighted Microsoft’s longstanding relationship with China, where it has operated since 1992 and houses its largest R&D center outside the U.S. While Microsoft’s core focus isn’t the Chinese domestic market, it continues to provide services to Chinese firms, maintaining a visible local presence compared to other American tech giants.

Addressing the complexities of U.S.-China tech relations amid shifting political administrations, Smith noted that Microsoft can only operate in China where both American and Chinese governments are aligned in allowing certain services. He acknowledged a divide in how technology is allowed to move between the two countries, particularly between enterprise services and consumer offerings, and suggested that geopolitical forces, rather than tech companies, will ultimately determine the flow of technology to China.