[lbo-talk] Microsoft to invest heavily in China

uvj at vsnl.com uvj at vsnl.com
Fri Apr 28 09:53:27 PDT 2006


People's Daily Online http://english.peopledaily.com.cn/

Sci-Edu

UPDATED: 17:32, April 27, 2006

Microsoft to invest heavily in China http://english.peopledaily.com.cn/200604/27/eng20060427_261699.html

Microsoft Corp disclosed the details of a deal signed with China's top economic planning body, the National Development and Reform Commission (NDRC) on Wednesday.

Microsoft's vice president and chief technology officer Craig Mundie arrived in Beijing to disclose the details of the MOU signed on Apr 18, according to which, Microsoft Corp will invest $100 million in setting up cooperation with China-based software enterprises and their subsidiaries, joint ventures outside China.

It will place orders worth $100 million to software enterprises in China. Microsoft will place a 700-million-U.S.-dollar hardware export order with Chinese companies in each of the next five years. In addition, it has a plan to train 10,000 software professionals in China within five years.

The MOU is the second of its kind the software giant has signed with the Chinese Government. The first such MOU was in 2002 with the then State Planning Commission, under which the software firm committed itself to investing 6.2 billion yuan (775 million US dollars) in a package of procurement, investment, talent training, technology development.

Bill Gates, chairman and chief software architect of Microsoft said in a written statement that he is delighted to see China's efforts made in IPR protection, and the signing of the MOU shows Microsoft's long-term commitment to China software industry.

In the past month, major PC makers in China including Lenovo, Tsinghua Tongfang and Founder signed orders for Windows operating system worth over $1 billion with Microsoft. Microsoft's commitment to invest in China is regarded as a "return" for the deal.

By People's Daily Online

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