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Microsoft is aware of power politics not only in China but also in the Asian Region. Considering the fact that India has been progressing as a hub for more than 100s of UT initiatives, MS might need to tilt towards decision that may indirectly impact positively. Furthermore, China's position on AI is still needs to unfold and especially when it comes to a USA based tech-giant is working on an advanced technology like AI, I think they will make policies to regularize it in their way. So Microsoft might leave China before even they announce a new version of ChatGPT.