Microsoft is requesting that some of its China-based employees consider transferring outside the country, the company stated on Thursday, as Sino-US relations become strained amidst a race for cutting-edge technology.

Washington has been attempting to limit Beijing's access to advanced chips used in AI applications on the grounds that they can be utilised to strengthen the country's military, sparking tensions that have put pressure on U.S. companies operating in China.

Microsoft is asking approximately 700 to 800 individuals who are involved in machine learning and other cloud computing-related work to consider relocating, according to the Wall Street Journal, which first reported the news.

"Providing internal opportunities is a regular part of managing our global business. As part of this process, we shared an optional internal transfer opportunity with a subset of employees," a Microsoft spokesperson said in an emailed statement, without specifying the number of employees to whom they sent the request.

Microsoft remains committed to China and will continue to operate there and other markets, the spokesperson said.
The Windows maker is among US companies that have the largest presence in China. It entered the market in 1992 and operates a large research and development centre in the country.

The employees, mostly engineers of Chinese nationality, were earlier in the week offered an option to transfer to the US, Ireland, Australia, and New Zealand, the WSJ reported, citing people familiar with the matter.

The move comes days after US President Joe Biden's administration raised tariffs on various Chinese imports, including electric vehicle batteries, computer chips, and medical products.

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