Microsoft's joint venture Wicresoft will close its China operations tomorrow. The move affects 2,000 employees who handle tech support for Windows and Office products.

Wicresoft, founded in 2002 as Microsoft's first Chinese joint venture, grew into a global IT player with 10,000 employees across the U.S., Europe, and Japan. But rising U.S.-China tensions and fierce competition from local rivals like Kingsoft have pushed Microsoft to reduce its China footprint.

The shutdown follows Microsoft's closure of its Shanghai AI lab earlier this year. When a leaked internal email suggested Microsoft itself was exiting China, the company quickly denied it. But the Wicresoft closure raises questions about how Microsoft will support its Chinese customers.

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