Microsoft China offices raided, company under government investigation

Microsoft's relationship with China has been slightly tense in recent months, particularly after the country's government banned Windows 8 from official use, alleging that the company's relationship with the US government was a bit too close for comfort. That prompted Microsoft to respond with explicit and unambiguous denials and clarifications about its relationship with American security agencies. 

But even as Microsoft prepares to launch its Xbox One console in China, things appear to have taken a turn for the worse. Microsoft has confirmed that four of its offices across China - in Beijing, Shanghai, Guangzhou and Chengdu - have been raided today as part of an official government investigation by the State Administration for Industry and Commerce. 

As the South China Morning Post reports, Microsoft China spokesperson Joan Li has said that the company will "actively cooperate" with the authorities, but the exact nature of the investigation remains unclear. In a statement to NDTV, she said: 

We aim to build products that deliver the features, security and reliability customers expect and we're happy to answer the government's questions.

It is also unclear whether the investigation will impact on Microsoft's operations in the country, including its planned Xbox One launch. So far, Chinese authorities have not publicly clarified the purpose of their impromptu 'inspections', or the reasons behind their investigation of the company.

Source: SCMP

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If this is how they are going to treat Microsoft, I worry what will happen to Sony once they start trying to sell the ps4 in the region.

I don't think this has anything to do with consoles. The Chinese were raiding to see if they could get Windows XP source code so they can create their own fork.

The one thing that really terrifies the Chinese government is the Arab Spring. They were able to suppress all of the demonstrations and organizations tied to that movement, but it wasn't cheap and it wasn't easy. Due to the internet driven nature of those protests, the last thing they want is a massive American tech firm gaining influence in their own backyard, regardless of Microsoft's intentions.

Conspiracy theory eh? Lets look at the bigger picture then.
Cuba caught sending aircraft parts and nuclear control parts to North Korea.
http://www.miamiherald.com/201...pons-shipment-to-north.html

We've known for a long time that North Korea and China are in bed together.

Iran, Russia and North Korea working together to develop Biological Weapons:
http://www.wnd.com/2013/06/ira...neral-warns-of-bio-warfare/

The links above showing China and Russia becoming buddy buddy.

So we have North Korea with long range missiles and biological weapons (the article above quoting a modified small pox, and an unknown variant of SARS.

We've known for ages that Russia's had nuclear capabilities with long range missiles, and now we've caught Cuba's hand in the pot once again.

I'm not pointing to outlandish fake newspapers or blown up stories. They're editorials pointing out facts of discovery.

Conspiracy theory eh?

Thats all I got to, and gave up
Really, we are talking about China raiding a company, thats all, nothing to do with Russia or North Korea or Missiles

Now , get some foil undies on and chill out and keep to the Subject

The main relationship between North Korea and China is purely economic. Due to the conditions in North Korea, they are unable to sustain their own population, thus China currently exports a large quantity of food to them. This is beneficial for both China and Korea because one wants food while the other wants money. That's the basis of international trade and open markets.

The problem here is that most western countries argue that if China were to stop providing North Korea with food, then North Korea would have to submit to them. There are obviously many ethical problems there. However, they somehow justify this because "Democracies are obviously the most ethical form of government" as though the problems with social class and economic hierarchy that are so prevalent (especially in the United States) are not problems at all by hiding it under the guise of equality.

And about China and Russia. They are two countries that border each other. With the two of them being in good relation, it is actually a good thing. At least we know there will not be a large scale war between the two. There is nothing inherently wrong with two countries being close allies.

Lastly, some people above have stated that "The united states and its allies should just invade china". Not only do I not believe we should do that, that is NOT what the United States goal is in the world. Historically, we have tried to keep the peace between countries, first by the league of nations, proposed by the United States, then by being a world power in the United Nations. If the US were to invade another country on the basis of having different ideals, then there will be no difference between what we stand for and what the media tries to make you believe communism stands for.

Na, it's a far deeper issue than that, in this case. They don't just need Microsoft's bribes, which I have no doubt they give, they want them to become compliant with their way of operation, which won't happen. It will be interesting to see Microsoft's demise in China in the following years. If it plays out in any other way, I'd be surprised, because I really doubt the Chinese would loosen the rope.

Microsoft will not see any demise in China. The Chinese will still use Windows XP well into 2040.

Microsoft never made any money in China so there's not much to lose there.

How do you even make this stuff up? Microsoft has huge revenues in China and China is one of the most important economies in the world, so there's a lot to lose there.

And? That's not related to your nonsensical statement that Microsoft doesn't make money in China and has nothing to lose there. In fact, with the astronomical projected growth of technology adoption in China, they have more to lose than ever, at this point.

Among other things, the current "crackdown" of the Chinese government on Microsoft is directly related to Microsoft's crackdown on Chinese companies operating in the United States, in a very unusual cooperation with the Attorney-General, based on their (absolutely indisputable) claim that the Chinese companies have an unfair advantage because they use "pirated" Microsoft software. The Chinese got very annoyed because some of those companies are closely related to the Chinese government, and the Chinese also don't like Microsoft's recent focus on real (not fake, like in Bill Gates's time) software protection mechanisms which prevent seamless deployment and usage of pirated Microsoft operating systems.

After few more of these NSA induced paybacks, we can expect USA corporations to pressure the state and it's benevolent agencies into regression due to plummeting profits.

Yogurth said,
After few more of these NSA induced paybacks, we can expect USA corporations to pressure the state and it's benevolent agencies into regression due to plummeting profits.

Indeed, if it hurts the money flow in America then the government will have to scale back and reign in the intelligence services

I suspect it may be too late for that. It's difficult to imagine what changes would assure the rest of the world and, even if changes are made, the NSA won't tell you what they are so there's nothing to build trust on.

We should pull out of China, everything, manufacturing, software, sales etc...complete embargo, the entire western world should shut China out back to the stone ages

In principle, yes, that is what we should do. However, in reality, that just won't be possible. We've let China grow too big for that.

ZipZapRap said,

whatever for??????

where should i start, their human rights abuses, environmental devastation or government corruption on a massive scale?

Sonne said,
We should pull out of China, everything, manufacturing, software, sales etc...complete embargo, the entire western world should shut China out back to the stone ages

LOL
You're so clueless that it's something between hilarious and scary. Without China, the US is the one that would "go back to the stone age".

audioman said,

LOL
You're so clueless that it's something between hilarious and scary. Without China, the US is the one that would "go back to the stone age".

The US would be perfectly fine without China, there are other countries with cheap labor and as far as debt to China, give them a big middle finger

There needs to be a financial reason for Western businesses to pull out of China, other than minor inconveniences. The best incentive is to reduce corporate income tax to zero for all work done in the home country. Eliminate tax breaks for foreign offices and companies that outsource extensively. Personal income taxes would still be paid, without a rate increase, a more jobs are created (or brought back home). Total tax revenue would climb as decent paying middle class jobs return. Since the biggest corporations don't pay taxes at home anymore due to corrupt loopholes. The short term cost would be high as China may call in its debt. We'll get over that, and recover nicely with internal growth. Will it happen? Nah, too much corruption and laziness by the corporate "people" who'd rather outsource than make products at home again and too much wimpiness by today's politicians. Improved manufacturing methods would keep most costs down with better just in time delivery improved.

I'll keep dreaming.

A tongue in cheek reason enough to keep their tourists out of our communities, literally urinating on our landmarks, spitting, yelling and shoving through line ups. Their money isn't worth their crimes against civilized decency.

Sonne said,
We should pull out of China

it's not like pulling out of Jennifer last night.

Even the US flag is manufactured in China.


sent from my iPhone made in China

Sonne said,

The US would be perfectly fine without China, there are other countries with cheap labor and as far as debt to China, give them a big middle finger


You're just a clueless kid, sorry. Without China, the US would literally be in a "stone age". Almost all major and not so major electronic equipment is made with components that are manufactured either fully or partially in China, and moving that manufacturing to the US is simply impossible and other countries don't have even a tenth of the manufacturing capability either.

I think US instead of wasting their money in middle east and Egypt, they should get partnered with Europe , Japan and south Korea and just attack China and Russia. Not only US trillions debt will be wiped out but most of the worlds problem will be solved

Pulled what out of US? How about World war Chinese bonds that US holds? Which china never paid interest on and delinquent on interest for 20+ years? It adds up to trillions, where China holds 1.2Trillion os US bonds so who would hurt?

The People's Republic of China sustains world economies including the United States by purchasing its debt bonds.

If China stopped exports and manufacturing, an apple would cost $100 a piece in the US, a USB adapter $49 and all computer components would be 50-100 times the cost. As well as a massive increase on all other durable goods, and tea.

Sonne said,

The US would be perfectly fine without China, there are other countries with cheap labor and as far as debt to China, give them a big middle finger

Without china? yes. Without cheap labor? no. There's one thing for sure. We westerners like to exploit people and then pull out when it doesn't profit us anymore. China learned from a really good professor.

DeusProto said,
If China stopped exports and manufacturing, an apple would cost $100 a piece in the US, a USB adapter $49 and all computer components would be 50-100 times the cost. As well as a massive increase on all other durable goods, and tea.

So tell me why an iMac would only cost $100 but a USB adapter would cost $49?

Your price predictions are insane.

Enron said,

So tell me why an iMac would only cost $100 but a USB adapter would cost $49?

Your price predictions are insane.

Imagine how much oranges would cost :p

Sonne said,

where should i start, their human rights abuses, environmental devastation or government corruption on a massive scale?

We talking about China or the US here? :)

Deleted Bye said,
imagine if china pulled out of the US

that would be a devastating blow to the Chinese economy as almost all things in the US are made in china.

jakem1 said,
The US government has some serious issues with Huawei.Hypocrites !!

FTFY


The whole world besides China has issues with them as we don't tolerate stealing. China supports stealing ideas and cloning, which is not right so STFU

royalextremist said,
Chinese Government has some serious issues with Microsoft.Hypocrites !!
You have it all wrong. China wants a Microsoft of their own. Raiding their offices lets them get the inside scoop on Microsoft's work and use that as a starting point.

audioman said,
INSTEAD of? What's wrong with you?

What's wrong with China ? Find the answer, you'll find your question's answer automatically ;)

audioman said,
You're not representing your country well, at all.

I'm not, that's my personal opinion. Where did I say I speak for my whole country