Microsoft president states that China is closing the technological gap with the West.

• Microsoft's Brad Smith stated to CNBC's Karen Tso that one of the dangers is that people who don't frequently visit China assume they are behind.
• Since 1992, Microsoft has been present in China, as stated on its website, with its largest research and development center located outside the U.S.

Microsoft's president and vice-chairman cautioned that the West should not underestimate China's progress in technology advancements.

In recent years, the conflict between the U.S. and China has primarily focused on their competition for technological dominance, resulting in a series of export restrictions on essential technologies. Late in 2019, Huawei released a smartphone that reportedly achieved 5G download speeds, sparking rumors of a possible chip advancement that would have seemingly circumvented U.S. tech sanctions.

At the Web Summit tech conference in Lisbon, Portugal, on Tuesday, Microsoft's Brad Smith stated that China is almost or even surpassing technology advancements.

"One danger, he said, is that people who don't visit China often underestimate its progress. However, when you visit, you're amazed by its advancements."

He foresaw that Chinese and American corporations would remain rivals in technology for years to come and encouraged U.S. and European businesses to cooperate in order to expand their economies and introduce cutting-edge technology, including artificial intelligence, to the global market.

Since 1992, Microsoft has been operating in China, as stated on its website. Its largest research and development center outside the U.S. is located in China. Last year, Microsoft CEO Satya Nadella revealed that the company doesn't view China as a domestic market but provides services to Chinese companies and has a more prominent presence locally compared to many other U.S. tech giants.

It is uncertain whether trade and technology transfers with China will become more difficult as the US transitions from the Biden to the Trump administration.

"As an American technology company, we can conduct business in China only when we offer a service that the Chinese government desires to have there and the U.S. government wants us to bring there. However, in some cases, they seem to have a level of comfort with a data center supporting a Mercedes, Siemens, Starbucks, or General Motors, but not in consumer services."

It was predicted that in the future, certain technology will shift to China, and it won't be the tech companies that make the decision.

—CNBC's Jordan Novet contributed to this article.