Microsoft has been steadily scaling back its China presence, closing at least 15 branch offices and joint ventures over the past five years as Beijing favors domestic software. U.S. export controls also make it harder to grow its cloud and AI businesses, leaving the market with relatively little economic upside. Reuters reports: Microsoft took a major hit from the erosion of trust between Washington and Beijing, the five people said. China has since 2017 pushed the use of domestic software, which Beijing sees as more secure and whose quality is increasingly competitive with Windows and Office. U.S. restrictions, including export controls on advanced technology, have meanwhile hindered effort...