Eastern China's Shandong Langchao Group has signed a memorandum of understanding with Microsoft, to establish a strategic partnership and strengthen cooperation between the two companies.

The two sides will jointly develop software application systems for Chinese users and original equipment manufacturers or OEMs in China.

A formal agreement will be signed within six months.

Langchao Group is the largest provider of software applications in China.

Insiders think Microsoft seeks the partner in a bid to tap China's enterprise resource planning (ERP) software market.

Last month, E-commerce computer and software provider Powerise Information Technology also signed a Microsoft Business Solution cooperation agreement.

(CRI November 10, 2004)