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Microsoft has been making its GitHub subsidiary more dependent on the company’s own Azure public cloud.

That lines up with Microsoft’s desire to increase the use of Azure, whose revenue was growing 40% in the second quarter, faster than any other major product category the company discloses every three months.

At the same time, it must be careful not to break commitments it made at the time of the $7.5 billion GitHub acquisition in 2018. Otherwise, some developers wary of Microsoft’s past behavior might not want to use GitHub to store their software code.

In the late 1990s, the U.S. Department of Justice argued that Microsoft had illegally required device makers to commit to including the Internet Explorer browser on every PC they shipped with the Windows 95 operating system. In the settlement of the landmark antitrust case, Microsoft agreed to a ban on pacts mandating exclusive support of its software, among other changes.

When GitHub was a standalone company, software developers saw it as a neutral ground where they could house their software projects and then run the code on the market-leading Amazon Web Services cloud or any other computing environment. Then Microsoft announced its plan to buy GitHub. Some developers objected, and over 1,900 people signed a petition to block the deal.

“Microsoft likely acquired GitHub so it could more closely integrate it with Microsoft Visual Studio Team Services (VSTS) and ultimately help drive compute usage for Azure,” Sid Sijbrandij, co-founder and CEO of GitHub competitor GitLab, was quoted as saying in a company blog post.

On the day Microsoft announced the GitHub deal, Microsoft published a blog post from its CEO, Satya Nadella, that communicated Microsoft’s intent.

“Going forward, GitHub will remain an open platform, which any developer can plug into and extend,” Nadella wrote. “Developers will continue to be able to use the programming languages, tools and operating systems of their choice for their projects — and will still be able to deploy their code on any cloud and any device.”

The company would also speed up the ability for developers at large companies to use Microsoft’s cloud infrastructure, Nadella wrote.

Some developers worried that Microsoft would adjust GitHub so that running code on Azure would be the easiest approach.

But Microsoft has employed more subtle tactics.

Instead of pushing developers to run their code on Azure, GitHub has simply introduced new products and features, many of which are built on Azure. So when developers use GitHub, Azure is increasingly the backbone.

For instance, GitHub Copilot, a tool that helps developers complete their coding projects line by line, uses Azure, said Scott Guthrie, Microsoft’s executive vice president for cloud and enterprise, in an interview with CNBC. The GitHub Actions service for building and deploying code and the Codespaces cloud-based development environment operate in Azure, too, Guthrie said.

“GitHub, historically, I could say, has run in their own data centers, not actually on a public cloud, and a lot of the new features of GitHub are using our public cloud,” Guthrie said.

That means the GitHub acquisition can increase Azure usage — even if customers don’t realize it — and Microsoft can say that GitHub continues to allow people to run their code on any server.

Under Nadella, Microsoft has transformed other companies it has bought into Azure users. In 2019 LinkedIn announced plans to move the business social network to Azure, and in 2020 Microsoft said Mojang Studios, publisher of the popular Minecraft video game, would stop using Amazon’s AWS.

“There is a lot of great stuff we’re doing, but at the same time, we’re being super careful, obviously, because you know, GitHub has a gestalt of its own, and so we’re making sure — and I think we’ve done a really good job of that — sort of being able to integrate all of those features in a very native way inside of GitHub,” Guthrie said.

In September Microsoft informed investors that its closely watched Azure and Other Cloud Services revenue growth number each quarter would expand to include “additional GitHub cloud revenue now delivered via our datacenter infrastructure.” Until now that revenue has fallen under the company’s Server Products category.

WATCH: Investors can ‘hide out’ in shares of Microsoft, says Laffer Tengler Investments CEO

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Here’s where Apple makes its products — and how Trump’s tariffs could have an impact

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Here's where Apple makes its products — and how Trump's tariffs could have an impact

Apple’s iPhone 16 at an Apple Store on Regent Street in London on Sept. 20, 2024.

Rasid Necati Aslim | Anadolu | Getty Images

Apple has made moves to diversify its supply chain beyond China to places like India and Vietnam, but tariffs announced by the White House are set to hit those countries too.

U.S. President Donald Trump laid out “reciprocal tariff” rates on more than 180 countries on Wednesday.

China will face a 34% tariff, but with the existing 20% rate, that brings the true tariff rate on Beijing under this Trump term to 54%, CNBC reported. India faces a 26% tariff, while Vietnam’s rate is 46%.

Apple was not immediately available for comment when contacted by CNBC.

Here’s a breakdown on Apple’s supply chain footprint that could be affected by tariffs.

China

The majority of Apple’s iPhones are still assembled in China by partner Foxconn.

China accounts for around 80% of Apple’s production capacity, according to estimates from Evercore ISI in a note last month.

Around 90% of iPhones are assembled in China, Evercore ISI said.

While the number of manufacturing sites in China dropped between Apple’s 2017 and 2020 fiscal year, it has since rebounded, Bernstein said in a note last month. Chinese suppliers account for around 40% of Apple’s total, Bernstein said.

Evercore ISI estimates that 55% of Apple’s Mac products and 80% of iPads are assembled in China.

India

Apple is targeting around 25% of all iPhones globally to be made in India, a government minister said in 2023.

India could reach about 15%-20% of overall iPhone production by the end of 2025, Bernstein analysts estimate. Evercore ISI said around 10% to 15% of iPhones are currently assembled in India.

Vietnam

Vietnam has emerged in the past few years as a popular manufacturing hub for consumer electronics. Apple has increased its production in Vietnam.

Around 20% of iPad production and 90% of Apple’s wearable product assembly like the Apple Watch takes place in Vietnam, according to Evercore ISI.

Other key countries

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Xiaomi delivers record cars in March as winners emerge in China’s EV race

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Xiaomi delivers record cars in March as winners emerge in China's EV race

A Xiaomi store in Shanghai, China, on March 16, 2025.

Qilai Shen/Bloomberg | Bloomberg | Getty Images

Chinese electric carmakers Xiaomi, Xpeng and Leapmotor each delivered nearly 30,000 or more cars in March, roughly twice several of their fellow startup competitors.

It’s a sign of how some automakers are pulling ahead, while BYD remains the market leader by far.

Xiaomi delivered a record number of electric vehicles in March, exceeding 29,000 units, the company announced on social media. That topped its prior run of delivering more than 20,000 vehicles in each of the past five months.

The SU7, Xiaomi’s flagship model, was involved in a crash on a highway on Tuesday that left three dead. The automaker on Tuesday afternoon released a statement on Chinese social media that the vehicle was in navigation on autopilot mode before the accident.

Based on preliminary information, the road was obstructed because of construction. The driver took control of the car but collided with construction infrastructure. Xiaomi added in the release that investigations were underway.

That came two weeks after the automaker announced on March 18 its goal to deliver 350,000 vehicles this year. There are also talks of the automaker expanding its second EV factory in Beijing to meet demand, Bloomberg reported on March 18. Xiaomi did not immediately respond to CNBC’s request for comment.

Its competitor Xpeng in March delivered 33,205 vehicles, the fifth consecutive month it has delivered over 30,000 units per month and reflecting a 268% surge in deliveries from the same month last year. March is also the fifth consecutive month the company has delivered over 15,000 units of the Mona M03.

Leapmotor delivered 37,095 vehicles, reflecting a 154% year-over-year growth. The Stellantis-owned automaker last month launched U.K. sales of two electric vehicle models, the T03 and the C10.

Li Auto delivered 36,674 vehicles in March, a 26.5% year-over-year increase, but fewer than every month in the second half of 2024. The company’s cars had gained early traction with Chinese consumers since most come with a fuel tank for charging the vehicle’s battery, reducing anxiety about driving range.

Tesla takes two of three top spots in China's most popular EV list

BYD sold 371,419 passenger vehicles in March, reflecting a year-over-year growth of 57.9%. Its overseas sales volume also hit a record high of 72,723 units in March.

In the same month, the automaker unveiled its “Super e-Platform” technology, which boasts 400 kilometers (roughly 249 miles) of range with five minutes of charging. The company in February also announced that it was integrating DeepSeek artificial intelligence to develop “DiPilot,” its advanced driver-assistance system.

Across the board, major companies across China’s electric car industry reported deliveries rose last month, indicating a pick-up in demand from the seasonally soft first two months of the year.

U.S. automaker Tesla sold 78,828 electric vehicles in China in March, marking a 11.5% year-over-year decline in growth.

Other Chinese carmakers saw growth in deliveries but some still struggled to break through the 20,000-unit mark.  

Nio delivered 15,039 vehicles, a 26.7% year-over-year growth, but well below the number of cars delivered in the months of May to December last year. Nio-owned Onvo, which markets its electric vehicles as family-oriented, in March recorded 15,039 units in deliveries.

Geely-owned Zeekr delivered 15,422 vehicles in March, increasing by 18.5% year over year. The company last month announced its rollout of free advanced driver-assistance technology to local customers in a bid to compete in the market.

Aito, as of April 2, has not published its delivery numbers for March. The automaker, which uses Huawei tech in its vehicles, on social media had reported monthly deliveries of 34,987 and 21,517 in January and February, respectively.

Quarterly performance

On a first-quarter basis, BYD remained in the lead with 986,098 vehicles sold. The automaker, which overtook Tesla in annual sales last year, surpassed the U.S. EV giant in battery electric vehicles sales this quarter.

Tesla sold 172,754 vehicles in China in the first quarter this year, according to monthly delivery numbers published by the China Passenger Car Association.

Xpeng also reported strong growth, with a total of 94,008 vehicles delivered in the quarter ending in March, reflecting a 331% year-over-year growth.

Leapmotor saw quarterly deliveries more than double to 87,552 units from 33,410 units the same period in 2024, according to publicly available numbers the company published.

However, Li Auto and Nio reported weaker growth than their competitors in the first quarter of the year.

Nio saw 42,094 vehicles delivered in the three months ended March 2025, an increase of 40.1% year over year. Li Auto saw a slower year-over-year growth of 15.5%, with a total of 92,864 vehicles delivered.

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De minimis trade loophole that boosted Chinese online retailers to end May 2

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De minimis trade loophole that boosted Chinese online retailers to end May 2

A driver for an independent contractor to FedEx delivers packages on Cyber Monday in New York, US, on Monday, Nov. 27, 2023.

Stephanie Keith | Bloomberg | Getty Images

President Donald Trump on Wednesday signed an executive order shutting the de minimis trade loophole, effective May 2.

Trump in February abruptly ended the de minimis trade exemption, which allows shipments worth less than $800 to enter the U.S. duty-free. The order overwhelmed U.S. Customs and Border Protection employees and caused the U.S. Postal Service to temporarily halt packages from China and Hong Kong. Within days of its announcement, Trump reversed course and delayed the cancellation of the provision.

Wednesday’s announcement, which came alongside a set of sweeping new tariffs, gives customs officials, retailers and logistics companies more time to prepare. Goods that qualify under the de minimis exemption will be subject to a duty of either 30% of their value, or $25 per item. That rate will increase to $50 per item on June 1, the White House said.

Use of the de minimis provision has exploded in recent years as shoppers flock to Chinese e-commerce companies Temu and Shein, which offer ultra-low cost apparel, electronics and other items. The U.S. Customs and Border Protection has said it processed more than 1.3 billion de minimis shipments in 2024, up from over 1 billion shipments in 2023.

Critics of the provision say it provides an unfair advantage to Chinese e-commerce companies and creates an influx of packages that are “subject to minimal documentation and inspection,” raising concerns around counterfeit and unsafe goods.

The Trump administration has sought to close the loophole over concerns that it facilitates shipments of fentanyl and other illicit substances on the claims that the packages are less likely to be inspected by customs agents.

Temu and Shein have taken steps to grow their operations in the U.S. as the de minimis loophole has come under greater scrutiny. After onboarding sellers with inventory in U.S. warehouses, Temu recently began steering shoppers to those items on its website, allowing it to speed up deliveries. Shein opened distribution centers in states including Illinois and California in 2022, and a supply chain hub in Seattle last year.

WATCH: President Trump signs executive orders for reciprocal tariffs

Pres. Trump signs executive orders for reciprocal tariffs

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