"Red Flag Software, a leading developer of Linux in China, was
cofounded by Software Research Institute of the Chinese Academy of
Sciences and NewMargin Venture Capital in June 2000. Thanks to its
relentless effort in promoting Linux, the company has received
strong support from the Chinese government in the past. But it is
faced with great difficulties now.
'Operating system and CPU are crucial to the growth of the
Chinese software industry,' said Yuan Meng, who is known as the
father of Chinese Linux. 'If China cannot develop the two
technologies independently, its information security will be out of
the question...'"