Static Linking" is the process of including the code in your application. By nature, a DLL is a dynamic link library and therefore no, including the DLL in the directory of your application is not static linking - it remains dynamic. The reason for placing it in the directory of the application is so that the application can find it without the need for install.
You shouldn't link directly against the DLL. Instead, link against the corresponding import library (should be Wininet. Lib).
The DLL still needs to be accessible to your application at runtime, of course. The . Lib file is needed by the linker to setup proper linkage to the DLL.
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