Microsoft reportedly told hundreds of AI and cloud employees to consider leaving China

• Microsoft is proposing to relocate hundreds of employees working in China.

• The offer was made to machine learning and cloud workers, the Wall Street Journal reported.

• This report comes against a backdrop of growing tensions between Washington and Beijing on a range of issues.

Microsoft has reportedly asked up to 800 employees in China if they would consider leaving the country as tensions between the United States and China continue to rise.

The company offers transfers to workers involved in machine learning or cloud computing to countries including the United States, Ireland and Australia, sources told The Wall Street Journal.

Microsoft representatives did not immediately respond to a request for comment from Business Insider, made outside of normal business hours.

A Microsoft spokesperson told the Journal that internal transfer opportunities are an integral part of doing business and that the company remains committed to its China operations.

The report comes amid growing tensions between Washington and Beijing over issues such as AI chips. The Biden administration is considering new rules that would require U.S. technology companies to hold licenses before giving Chinese customers access to AI chips, the Journal reported.

Some fear tougher rules could intensify the fight with Beijing over chips.

Chinese authorities have also asked domestic tech giants to purchase locally made AI chips. Large companies like Ali Baba, Baidu, Tencentand the parent company of TikTok, ByteDancehave been asked to cut spending on foreign-made chips like those from Nvidia, Information reported this week, citing unnamed sources.

The move is a blow to Nvidia, which views China as a critical market and key revenue generator.

Other tech companies have also struggled with geopolitical tensions.

Apple has struggled in China recently, with iPhone sales being beaten down by local suppliers in this key market. Apple also appears to be working on diversify its supply chains far from China.

Beijing has cracked down on the use of iPhones by authorities. Chinese authorities in at least eight provinces have been asked to stop using Apple devices, Bloomberg previously reported.

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