Why is Microsoft called 微软 in Chinese?

Hello community. I've found an old Xbox 360 charger with 微软 written on it, which I found to be Microsoft's name translated in Chinese, and I think it is a literal translation? I recognize 微 (bi) which is also Japanese Kanji for "delicate", so I think in this case it literally translates in Chinese as "little soft"?

If this is true and the translation is literal, then why does not Chinese have a system to write/read foreign language names as they are supposed to (or at least close to it) as Katakana in Japanese?

Thanks

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