According to the MOU, Microsoft will make further investments to upgrade its Asian regional engineering centre, founded in Shanghai in 1998, in order to turn it into a global technical centre.

Microsoft will also set up a joint venture here, which aims to provide Web-based technical support for its global customers.

"The agreement is a milestone for Microsoft as it illustrates the increase of our investment here and our long-term commitment to the Chinese market," said Bill Gates, chairman of the company.

Under the MOU, the Shanghai municipal government will have more training and technical assistance from Microsoft, whose operating system software is currently a worldwide mainstream product. The Shanghai municipal government can therefore count on receiving latest versions of Microsoft's software products in order to improve its administrative efficiency.

Besides acquiring more technical support from the company, the local government has meanwhile decided to further boost the use of authentic products from Microsoft with a three-year purchase intent agreement, though the specific volume involved is still unknown.

"It's not a simple deal, more importantly, it signals the Chinese Government's resolution to crack down on any practice that may harm the lawful interests of software companies like Microsoft," said Mayor Xu Kuangdi.

Meanwhile, Microsoft launched a one-year training programme yesterday, "Architect 2000," which is expected to extend to another 10 cities in the country and nurture 2,000 senior software research and development supervisors for Chinese companies through training courses in software design guidelines, development skills and the latest technology.

"By organizing such a programme, we can help build local intellectual capital that will support China's growth as a regional and global IT player," said Bill Gates.

(China Daily October 19, 2001)