China-US relations will define the next 30 years, Microsoft CEO Satya Nadella says


The next 30 years will be defined by China and U.S. relations, Microsoft CEO Satya Nadella said ahead of the company’s annual Build conference.

“I think the next 10 years, next 20 years, next 30 years, whatever your time horizon, is going to be defined by these two countries — China and the United States — creating more interdependence, not less,” Nadella told CNBC’s Jon Fortt in an interview published Monday.

“That’s what’s going to be good for the two countries. That’s what’s going to be good for the world,” Nadella said.

China and the U.S. have been ratcheting up trade threats in recent months, leaving the tech sector particularly vulnerable — with tech supply chains for American companies often rooted in China.

Microsoft counts China as its second largest revenue stream, behind only the U.S., according to FactSet estimates. Mainland China accounts for nearly 10 percent of the company’s revenue — a share that’s been steadily decreasing over the past three years, according to FactSet.

Globalization, as it was conceived, “has not created equitable growth in all parts,” Nadella said — and the solution is discussion and fair implementation of free trade principles.

“I think that anything that creates uncertainty is just not good. Whom does it serve?” Nadella said. “So my hope is that any dialogue that happens in any capital, in any venue, is all about sort of breaking through. I think there are legitimate issues that need to be discussed. But you need to come up with solutions.”


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