BEIJING, April 7 (Reuters) - Microsoft's ( MSFT ) joint

venture Wicresoft will cease its China operations from Tuesday,

a move that will lead to the layoff of about 2,000 staff,

Chinese media outlet Caijing reported on Monday, citing sources.

The move is in line with Microsoft's ( MSFT ) decision to stop

outsourcing after-sales support in China to Wicresoft, according

to Caijing, raising questions about how the U.S. tech firm will

service China-based users of its Windows and Office products.

The report said the closure would lead to layoffs mainly in

the 2,000-strong Microsoft ( MSFT ) outsourcing team in China.

Wicresoft did not respond to a request for comment.

Microsoft ( MSFT ) is pulling back from the China market amid growing

political and trade tensions between Washington and Beijing, and

stiff competition from Chinese rivals like Kingsoft.

IT services provider Shanghai Wicresoft Co. Ltd. was founded

in 2002 as Microsoft's ( MSFT ) first joint venture company in China, and

also operates in the United States, Europe and Japan with a

global headcount of over 10,000, Wicresoft's website says.

Microsoft ( MSFT ) closed a Shanghai lab focused on developing the

Internet of Things and artificial intelligence technologies

earlier this year, the South China Morning Post reported last

month.

A screenshot of an internal email circulated on Chinese

social media on Monday, indicating Microsoft ( MSFT ) was shutting down

its China operations. A Microsoft ( MSFT ) spokesperson told Reuters this

was inaccurate, while Caijing said it referred to Wicresoft.