(By Guancha Observer Network, Zhu Dong, edited by Zhang Guangkai)

Recently, according to reports by Japanese media "Nikkei Asia," the American tech giant Microsoft has stopped providing office software applications, including email services, to BGI Genomics, a Chinese gene research company. Internal emails indicate that many Office 365 services such as Word, PowerPoint, Excel, and Teams can no longer be accessed by BGI Genomics employees.

The Guancha Observer Network contacted BGI Genomics regarding this matter under the guise of an individual investor. The securities affairs staff member stated that the company is still tracking and addressing the issue, but there are currently no impacts, and operations remain normal.

Meanwhile, today (April 7th), rumors spread in the market about Microsoft halting operations in China and large-scale layoffs at its joint ventures. However, Microsoft publicly responded in the afternoon, stating, "The report that Microsoft will cease operations in China is inaccurate. Any questions regarding the business and operations of Wicresoft should be directed to them."

Reported to Have Cut Off Office Software Supply to BGI Genomics

The internal email cited by Japanese media indicates that it is unclear when Microsoft completely ceased services. BGI Genomics will subsequently run native WPS office software on its operating system and has instructed employees to back up emails and data contained within multiple Microsoft products such as Teams and Onedrive.

Two BGI Genomics employees mentioned that as of April 3rd, they were unable to access Office 365. One person noted that all Microsoft services except for Windows were unavailable, forcing them to back up files overnight.

At the same time, the Observer Network noticed that on the morning of April 3rd, a netizen posted on Weibo, stating, "A former student messaged me: Last night at midnight, Microsoft banned all online services of the BGI Genomics Office suite, including OneDrive, OneNote, and Outlook. BGI (Genomics) had just paid for the next year's fees."

Under the influence of information about U.S. tariff increases, BGI Genomics closed down sharply by 13% on April 7th.

In 2020, the U.S. government added two companies under BGI Genomics to the Entity List on the pretext of human rights issues; in 2021, the U.S. Department of Defense added BGI Genomics and 134 other Chinese enterprises to the so-called "Military-Industrial Complex" list; in 2023, the U.S. Commerce Department again added Shenzhen BGI Life Sciences Research Institute, among three other institutions under BGI Genomics, to the Entity List citing threats to national security.

The internal email cited by Japanese media also states that, apart from Office functions, Microsoft will stop providing artificial intelligence services such as Github Copilot and GPT operated by OpenAI to BGI Genomics.

It remains unclear whether other entities on the Entity List will experience similar situations.

Last month, the Observer Network learned that after the license for Microsoft Windows operating systems to supply Huawei expired without renewal, this meant that future Huawei PCs would adopt a fully domesticated solution, i.e., launching PCs with domestic chips and operating systems. Subsequently, Huawei confirmed at a press conference that HarmonyOS computers would officially debut in May this year.

HarmonyOS office software on mobile terminals is also accelerating. As of February 2025, thousands of government and enterprise internal office applications across the country have completed compatibility with the native HarmonyOS system, covering more than 30 key industries such as finance, energy, mining, transportation, healthcare, automobiles, logistics, and operators.

Denial of Stopping Operations in China Amid Reports of Large-Scale Layoffs at Joint Ventures

In the face of frequent "decoupling and disconnection" news, Microsoft has also shown signs of contraction in the Chinese market.

This morning (April 7th), screenshots of an internal email from Shanghai MicroSoft Software Co., Ltd. (hereinafter referred to as MicroSoft) circulated online. It mentioned, "Microsoft will adjust its global strategic layout and will officially cease operations in the China region starting April 8, 2025. This decision means that our related work on Microsoft projects will also terminate simultaneously."

MicroSoft was established in 2002 and is the first joint venture invested by Microsoft in China. According to its official website, MicroSoft is headquartered in Shanghai, has 36 delivery centers globally, distributed across China, the United States, Europe, and Japan, and employs over 10,000 people from 74 countries, serving more than 2,500 global clients. The industry commonly refers to it as a Microsoft outsourcing company.

Some domestic media quoted a MicroSoft employee as saying, "When I arrived at the company this morning, I was informed that all businesses related to Microsoft were suspended. Suddenly, hundreds of people in the company were told they had no jobs. Due to this change involving cities nationwide, according to rough estimates by him and his colleagues, this adjustment may involve nearly 2,000 people. Currently, the severance package provided by the company is N+1."

At the same time, several netizens claiming to be MicroSoft employees confirmed the "layoff" message on social media. However, some mentioned that Microsoft indeed terminated numerous cooperation projects with MicroSoft and transferred them to India, but Microsoft China is still operating normally and has not halted operations.

Subsequently, Microsoft publicly responded, stating, "The report that Microsoft will stop operations in China is inaccurate. Any questions regarding the business and operations of Wicresoft should be directed to them."

Earlier this year, Microsoft shut down its IoT and AI internal laboratory in Shanghai. This laboratory aimed to promote the development of IoT (Internet of Things) and AI technologies. By the time it celebrated its fifth anniversary last June, this laboratory supported 258 projects for nearly 100 companies in Pudong District.

In May last year, Microsoft offered overseas relocation options to approximately 700 to 800 AI technology-related employees in China and initiated large-scale layoffs. In July, the tech giant also closed all authorized physical stores in mainland China.

The Observer Network found that Microsoft rarely mentions "China" in its annual reports. Last June, during Brad Smith's appearance at a U.S. House of Representatives hearing to discuss detailed information about Microsoft's business in China, he revealed that Microsoft's revenue in China accounts for approximately 1.5% of its total revenue and that the company is reducing its engineering operations in China. Based on a revenue of $245.1 billion in fiscal year 2024, Microsoft's income in the Chinese market is around $3.7 billion (approximately RMB 270 billion).

Although the proportion of total revenue in the Chinese market is not high, Chinese enterprises seem to be contributing significantly to Microsoft's cloud services.

Industry media reports indicate that over the past two years, Azure OpenAI Service and other related services have rapidly driven Microsoft Cloud China's revenue, making it a new growth engine. In the second half of last year, the global revenue of Microsoft Cloud's OpenAI business accounted for the highest percentage from the Chinese market, approximately one-fourth. These customers include large model companies, internet giants with large model businesses, and outbound Chinese enterprises. Multiple sources close to Microsoft透露, these customers use OpenAI-related services by opening overseas accounts on Microsoft Cloud.

Currently, Microsoft products, including the Windows operating system, still hold considerable market share in China. However, under the actions of U.S. politicians to "decouple and disconnect," Microsoft's normal operations in China will inevitably be affected and will accelerate the localization of various types of software to a certain extent.

Under the influence of Trump's tariff increase information, Microsoft also saw consecutive declines on U.S. stocks. Today, it fell more than 4% pre-market, with a current market value of $2.7 trillion.

This article is an exclusive contribution by the Observer Network and cannot be reproduced without permission.

Original source: https://www.toutiao.com/article/7490482735421587978/

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