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CNET News: Microsoft Gets Diplomatic in China

Jun 06, 2002, 16:00 (7 Talkback[s])
(Other stories by Michael Kanellos)

"The Redmond, Wash.-based software giant is courting government officials, donating money to educational projects, and investing in joint ventures with local companies, said Jun Tang, president of Microsoft China. A few years back, the company was grappling with widespread piracy and with charges, brought by its former top China executive, that it price-gouged Chinese customers.

"'We just signed a deal with the State Council,' the country's chief governing body, Tang said. 'They all use Microsoft products.'

"Still, the company must contend with the realities of the market in China. Linux is catching on here. Earlier this year, the Asia-Pacific wing of research firm Gartner said 15 percent of companies in the region--excluding Japan--used Linux in the fourth quarter of 2001, up from between 5 percent and 7 percent a year earlier..."

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