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Microsoft Scales Back China Operations as Supply Chains Shift Abroad

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Microsoft has scaled down its China operations, with at least 15 branches and joint ventures in China ceasing operations over the past five years, including changes to its Azure cloud business. The company reported $90.007 billion in Q4 fiscal 2026 revenue and said China was about 1.5% of global revenue in 2024. Procurement guides from Chinese agencies often did not recommend Microsoft, potentially triggering extra security review steps, though Microsoft said it has no plans to leave the market.

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