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Chinese Government Raids Microsoft Offices in Four Cities
China confirmed it is investigating whether Microsoft Corp. broke its antimonopoly laws, the latest sign of growing commercial and policy tensions between the U.S. and China that are roiling technology companies in both countries. As the WSJ’s Shira Ovide reports:
http://online.wsj.com/articles/chin...antimonopoly-issues-1406628234?KEYWORDS=china
China confirmed it is investigating whether Microsoft Corp. broke its antimonopoly laws, the latest sign of growing commercial and policy tensions between the U.S. and China that are roiling technology companies in both countries. As the WSJ’s Shira Ovide reports:
Roughly 100 investigators on Monday raided Microsoft offices in four Chinese cities including Beijing, China’s State Administration for Industry and Commerce said on Tuesday. The agency said that Microsoft had not disclosed relevant information about some security features and how it ties its software products together. The statement wasn’t more specific.
The investigation represents a new friction point between the countries following disclosures about U.S. National Security Agency surveillance and revelations of hacking of U.S. networks by China’s military.
The disputes increasingly are affecting companies as well as official relations. Several U.S. executives have said their business in China is suffering as a result. Many U.S. tech companies are counting on sales growth in China, where spending on information technology is expected to reach $200 billion this year, or 10% of the global total, according to market researcher IDC.
“There’s a digital Cold War going on between the U.S. and China,” said Alvin Kwock, an analyst with J.P. Morgan.
…
China’s six-year-old antimonopoly law is a frequent focus of dispute. U.S. companies privately have complained for years that Chinese regulators slow acquisitions by U.S. companies or impose onerous restrictions on mergers to bolster domestic technology companies at the expense of U.S. ones.
Now some tech companies say China is using its antimonopoly law to punish U.S. companies for pricing policies or activities beyond mergers.
“The Chinese government has seized on using the [antimonopoly law] to promote Chinese producer welfare and to advance industrial policies that nurture domestic enterprises,” the U.S. Chamber of Commerce, which represents major U.S. corporations,wrote in an April letter to federal officials.
The investigation represents a new friction point between the countries following disclosures about U.S. National Security Agency surveillance and revelations of hacking of U.S. networks by China’s military.
The disputes increasingly are affecting companies as well as official relations. Several U.S. executives have said their business in China is suffering as a result. Many U.S. tech companies are counting on sales growth in China, where spending on information technology is expected to reach $200 billion this year, or 10% of the global total, according to market researcher IDC.
“There’s a digital Cold War going on between the U.S. and China,” said Alvin Kwock, an analyst with J.P. Morgan.
…
China’s six-year-old antimonopoly law is a frequent focus of dispute. U.S. companies privately have complained for years that Chinese regulators slow acquisitions by U.S. companies or impose onerous restrictions on mergers to bolster domestic technology companies at the expense of U.S. ones.
Now some tech companies say China is using its antimonopoly law to punish U.S. companies for pricing policies or activities beyond mergers.
“The Chinese government has seized on using the [antimonopoly law] to promote Chinese producer welfare and to advance industrial policies that nurture domestic enterprises,” the U.S. Chamber of Commerce, which represents major U.S. corporations,wrote in an April letter to federal officials.
http://online.wsj.com/articles/chin...antimonopoly-issues-1406628234?KEYWORDS=china
