Microsoft’s President and Vice-Chairman, Brad Smith, cautioned against assumptions that China lags behind the U.S. and Europe in tech advancements, suggesting that China is narrowing the gap with the West. Speaking at the Web Summit tech conference in Lisbon, Portugal, Smith remarked that China may be closer to or even catching up in various technology areas.
Amid ongoing U.S.-China tensions over technological leadership, both nations have imposed restrictions affecting critical tech exports. A significant example emerged last year when China’s Huawei launched a smartphone with reported download speeds typical of 5G, hinting at a potential chip innovation that defied U.S. sanctions. The event raised discussions around China’s technological capabilities despite export controls imposed by the U.S. and Europe.
Smith explained that misconceptions arise partly because those who don’t visit China often underestimate the nation’s technological advancements. He noted the competitiveness between American and Chinese tech firms, predicting it will persist into the future. He also called on U.S. and European firms to collaborate on technology to boost economies and foster innovations like artificial intelligence globally.
Microsoft, which has operated in China since 1992, maintains a visible presence there, supported by its largest research and development center outside the U.S. CEO Satya Nadella commented last year that Microsoft’s focus is not on the Chinese domestic market, but the company does provide services to Chinese businesses, setting it apart from other U.S. tech firms with less local visibility.
Addressing potential complications in trade and tech transfer as the U.S. transitions to a new administration, Smith noted that it’s too early to predict how policies may shift. He emphasized that Microsoft’s operations in China depend on regulatory alignment between the U.S. and Chinese governments. He illustrated this with the example of support services Microsoft provides for multinational corporations like Mercedes, Siemens, Starbucks, and General Motors, stating that corporate-focused tech often gains acceptance, while consumer services are less readily permitted.
Smith concluded that technology’s movement across borders, especially to China, may depend more on government decisions than on the preferences of tech companies themselves.
