There’s no question that the escalating U.S.-China trade war hurts the technology industry, plaguing even big players like Microsoft (NASDAQ:MSFT). You just need to look at the charts to see the impact. Up to the end of April, MSFT stock gained nearly 32%. But since the first of May, shares have closed down 2%.

Indeed, the consumer-tech giant faces two initial worries. First, the Microsoft stock price is vulnerable to panicky sentiment. We all like to believe that fundamentals drive the markets, and perhaps they do most of the time. But during an acutely bearish phase like the one we’re in, emotions arguably have the most leverage.

Plus, this trade war is tremendously ugly. If President Trump has proven anything, he’s a man who doesn’t like to lose. He even doesn’t like the perception of losing. On the other end of the table, the Chinese hate losing face. Unfortunately, Trump has indelicately called them out multiple times on the international stage. Thus, the optics don’t favor MSFT stock.

The second concern is fundamentally oriented. As you know, China wields the second-largest economy in the world. But beyond that, most of its ascendancy occurred via technology and innovation. That’s part of the reason why we’re having this trade war: China is hungry for tech. They just put their hand in the cookie jar too deeply.

Regardless of the cause, a major revenue pathway for MSFT stock may come to an unceremonious end. Primarily, China can use their tech stalwarts like Huawei to hurt Microsoft and similar names like Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) and Apple (NASDAQ:AAPL).

That strategy might work against lesser names. But against Microsoft stock, this potential retaliation won’t go far.

MSFT Stock Insulated From China’s Worst Attacks

At first glance, my confidence seems misplaced. A few weeks ago, CNBC’s Patti Domm detailed the many ways the Chinese government can turn the tables. As such, the Asian power can quickly erode the Microsoft stock price.

One of the effective weapons that China can deploy is consumer boycotts. Because the nation is mostly homogenous, the government can more easily swing public sentiment to their bidding.

Another disconcerting tool as it relates to MSFT stock is arbitrary regulatory enforcements. According to Adam Segal, director of digital and cybersecurity at the Council on Foreign Relations, Chinese regulators have zero hesitation toward infringing their own corporate and business laws. Segal summed up this environment, stating, “They could search your factory. At 5 o’clock in the morning, inspectors show up and demand to see your books.”

That said, Segal noted an important exception: the Chinese probably won’t go after Apple. Why? Because AAPL employs over one million workers in China. If the communist party overplays their hand, they can spark an internal backlash.

I believe you can make the same argument for MSFT stock. For starters, Microsoft also enjoys a strong presence in China. Going after them will result in jeopardizing many relevant jobs. More importantly, the American software and digital-services provider dominates the PC market.

This is a critical point because Huawei recently entered this saturated segment. Gaining a foothold in PCs would allow Huawei to create effective synergies across their platform and services network. Essentially, they’re trying to become the Chinese Microsoft … cheaper and almost as good.

The problem for Huawei is that MSFT also dominates the operating system market.

Microsoft Stock Is Too Deeply Embedded

Currently, Microsoft controls over 75% of OS market share. That’s only down from 91% back in January 2013. Since that time, several competitors have entered the fray, each trying to chip away at the leader.

Collectively, they’ve gained some ground. But at the end of the day, Microsoft-branded systems and programs still dominate. And because of that, consumers view the software giant as the gold standard.

Theoretically, Huawei can branch out on its own with homegrown platforms, but in all likelihood, that won’t fly. Huawei isn’t satisfied with merely impacting their native market. When I was abroad in eastern Europe earlier this year, I witnessed their aggressive and ever-expanding presence.

With a protracted trade war, Huawei’s international ambitions go down the toilet. Thus, I’m not terribly anxious about MSFT stock.

Plus, China must deal with an inconvenient fact: both their commerce and governmental arms depend on Microsoft’s technologies. By the way, that includes making China’s draconian and unethical crackdowns more effective, ironically enough. Prosecuting the tech firm will certainly hurt the Microsoft stock price, but it will probably hurt China more.

That’s not to say that MSFT stock will emerge unscathed. This is an ugly situation that can escalate to unpredictable magnitudes. But in the long run, I think Microsoft is too deeply embedded in the collective digital psyche. This should provide support as we head toward an otherwise uncertain future.

As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities.