Microsoft will cooperate with the Chinese government where they can. American companies do face skepticism in China after the Edward Snowden revelations.
U.S.-China business relations have been severely strained recently by wrangles over data privacy. State media has called for "severe punishment" against tech firms for helping the U.S government to steal secrets and monitor China, in the wake of revelations by former U.S. National Security Agency contractor Edward Snowden..
This could be a symptom of an escalating cyber war where the American and Chinese governments are criticizing each other.
The American company Quallcomm are one of the biggest producers in the world of microchips for smartphones. They are risking fines of $1 Billion for artificially having pressed prices up and by having abused their market position.
It can be argued that American tech companies are facing challenges in foreign markets, due to their willing collaboration with the US government.
That is not a comfortable place to be in for Microsoft , Qualcomm, Cisco, IBM and Apple
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