Not long afterfor government PCs, Microsoft is strengthening its relationships in the country, striking a deal with Chinese security vendor Qihoo 360.
The two companies on Monday pledged to cooperate in the development of mobile internet and artificial intelligence technologies, China's official news bureau Xinhua reported on Tuesday, citing a joint announcement by the Microsoft Asia Internet Engineering Academy and Qihoo 360.
Microsoft's Asia Internet Engineering Academy, based in Beijing, research efforts' are focused on Bing, advertising, and mobile internet services, while Qihoo 360 develops internet and mobile security products, browsers, and runs its own Android app store.
Microsoft — along with IBM, Google, and Apple — faces growing suspicion in China, spurred by state media reporting the dangers of relying on US technology.
Last week, China's state media warned that the three companies. Chinese Central Television later quoted a local academic who by sending personal data to Microsoft's cloud infrastructure in the US.
The accusations against US technology companies comes against a backdrop of heightened suspicion in China rooted in the leaks by former NSA contractor Edward Snowden, whose revelation about the extent of the US government's surveillance capabilities have been published since June last year.
While concerns are held over all US tech companies, Microsoft in particular is facing a tough time,
And the accusations are flying in both directions. The US in, described as "military hackers", with economic espionage. Today, US security firm of Chinese hackers with military connections that they've dubbed Putter Panda.