"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..."