"On 28 December 2001, the Beijing municipal government
selected several vendors to provide operating system (OS), office
automation (OA) and antivirus software for government PCs acquired
without copyrighted software. Beijing selected only Chinese
companies, including Red Flag (for its Linux OS) and Kingsoft (for
its WPS Office OA product). Microsoft, which was among the seven
vendors that bid for the contract, was the only one not selected.
These results indicate China's determination to protect
home-grown intellectual property and support Chinese software
vendors. Beijing's choice of indigenous vendors will likely boost
the domestic OS, OA and other software markets.
Beijing's decision marks a significant step in China's effort to
protect intellectual property, which it agreed to do when it
entered the World Trade Organization. Other actions, such as
destroying pirated audio, video CDs and software products, also
reflect China's determination to protect intellectual property.
However, the full adoption and implementation of this policy around
the country will take time due to China's vast territory, highly
decentralized government hierarchy and long-established custom of
using low-priced pirated versions."