Microsoft to sell MSN China to local partner

US technology company Microsoft is set to sell its operations in MSN China to Xichuang Technology, a company founded by a former manager of Microsoft Online.

Microsoft's Chinese portal ran into difficulties caused by strict government regulation and competition from local rivals.

Last month, the company revealed on its blog that it was planning to shut down the portal completely, as it makes the shift towards a focus on Windows 10 software and services.

In a statement, the company said that it would continue to invest in China despite the roadblocks it faced from its MSN portal there.

"After selling off the unpopular unit, Microsoft will continue to invest in China in other businesses, including computing and cloud services," the statement said.

Xichuang Technology was co-founded in 2015 by Anderson Liu, who had previously held the position of general manager within Microsoft Online.

The financial details of the agreement have not been disclosed at this time.