This U.S. Tech Exec Is in China This Week

Lenovo Tech World In Beijing
BEIJING, CHINA - MAY 28: (CHINA OUT) Microsoft CEO Satya Nadella speaks during the Lenovo Tech World at China National Convention Center on May 28, 2015 in Beijing, China. Lenovo launched a series of new products during the one-day event. (Photo by ChinaFotoPress/ChinaFotoPress via Getty Images)
ChinaFotoPress ChinaFotoPress via Getty Images

Microsoft chief executive Satya Nadella is in Beijing this week, a company spokesman said Tuesday, as China’s antitrust investigation of the U.S. software titan nears its third year.

Nadella is expected to meet government officials to discuss the probe, a source familiar with the matter said.

His visit is the second over the past month to China by a high-profile U.S. technology executive after Apple (AAPL) chief executive Tim Cook’s mid-May visit in a bid to reinvigorate sales. Cook met China’s vice premier Wang Yang on May 17.

Microsoft (MSFT) is one of several foreign firms to have come under scrutiny as China seeks to enforce a 2008 anti-monopoly law, which some critics say is being used to unfairly target overseas businesses.

Revenues earned in the country for the firm also have come under pressure, as China seeks to replace western tech products with those manufactured locally.

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The State Administration for Industry and Commerce (SAIC), one of China’s anti-monopoly regulators, conducted raids on Microsoft in mid-2014 relating to the anti-monopoly law.

The investigation relates to compatibility, bundle sales, and file verification issues related to Windows and Office software, according to Microsoft.

Nadella is no stranger to China. He visited in September 2014, after news of the investigation broke. At a meeting with a top regulator in Beijing at that time, Nadella promised to cooperate fully with authorities in their investigation.

But in a sign that the matter still had not been resolved, SAIC said in January that it had requested Microsoft to explain some issues that came to the fore from digital data obtained as part of an antitrust probe.

A spokesman for Microsoft declined to confirm whether Nadella is meeting with government officials and said his China visit will include attending a Microsoft developer day and Tsinghua management school event.

He is a member of the advisory board of the School of Economics and Management at Tsinghua University, which counts President Xi Jinping among its alumni. Nadella hosted Xi at Microsoft’s campus in Seattle in September when the Chinese president visited the United States for a weeklong trip.

The Information Office of the State Council, China’s cabinet that oversees SAIC, did not immediately respond to questions.

Nadella’s visit also comes as Microsoft prepares to shut down its MSN China portal in June.

The U.S. software company has also taken a public beating in China in the past few days as users criticized its push to get them to mandatorily upgrade their Windows operating systems, the official Xinhua news agency reported.

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