Microsoft Wednesday declared that it had signed a Memorandum of Understanding with National Development and Reform Commission of China during Chinese President Hu Jintao's visit to the company. It is a further commitment on its China strategy which seems to be working better now. An article by China News Service (CNS) Friday gives analysis as the following.

Microsoft has reasons to be particularly proud these days. It hosted the reception for Chinese President Hu Jintao during the latter's visit to the US and won big orders from four major Chinese PC makers. The giant company finally began to see its good days on horizon in China.

The favorable environment in China helps Microsoft's success here. China has been increasingly integrated into and bound by the rules of the international community. The intellectual property rights protection is one of them.

In its 11th Five-year Plan for 2006-2010, China promotes the idea of an innovation-oriented nation. That cannot be achieved without the protection of the Intellectual Property Rights.

Microsoft's operating system has won biddings from the Chinese government procurement which has launched a campaign to make sure authentic software is installed in PCs of government institutions. The efforts on promoting authentic software is under way in the whole society, including publicity and market rectification. Microsoft's benefits are protected more effectively in the process than ever.

The biggest software company in the world was founded in 1975 while China, the largest developing country in the world, has a history of more than 5,000 years. When Microsoft entered China in 1992, it was at a loss about how to deal with a country with such a long history.

In Microsoft's early days in China, its policy of ��anti-piracy�� and image of monopoly disgruntled the Chinese public. Soon both Bill Gates and Microsoft's CEO Steve Ballmer realized that something had to be done to appease the public.

That brought about frequent visits between 1999 and 2001 to China by the company's executives. In those talks then Chinese leaders, including President Jiang Zemin, Premier Zhu Rongji and Director of the Planning Commission(former NDRC) Zeng Peiyan, told Microsoft that it can cooperate with the National Development and Reform Commission and the Ministry of Information Industry.

Then a series of agreements were signed between Microsoft and the two ministries on investment, personnel training and aid projects to equip rural schools with computers by Microsoft.

Microsoft's cooperation in China proceeded well since then and built up an image of a good corporate citizen. Chinese President Hu Jintao's recent visit to Microsoft during his US tour symbolizes the support of the Chinese government and reflects Microsoft's years of efforts.

China may be the only country in the world which is able to challenge Microsoft's Windows. Thus, Microsoft didn't try to change China as it did before. It's tried to change itself for China. Chen Yongzheng, President of Microsoft Greater China, has strengthened communications with the company's US headquarters to help them develop further understanding about China.

Microsoft has not made profit in China but has firstly invested heavily on cooperative projects in China. As a Chinese saying goes: if you want to take, you must first give.

For Microsoft, the upturn to profits is right in sight.

By People's Daily Online