Microsoft woos China

BEIJING: Microsoft Corp founder and chairman Bill Gates is seeking alliances with major Chinese banks and telecom firms during a two-day visit to Beijing which started on Thursday, company officials said.

Gates, during a visit closed to foreign reporters, would also meet key Chinese government officials. China is due to announce a restructuring of its ministries next month and some, such as the Ministry of Information Industry which regulates the IT industry, are expected to get new ministers.

The world's largest software maker, which pledged last year to invest $750 million in China over three years, sealed a deal with the Industrial and Commercial Bank of China to help it set up a security system for its online banking business. China's largest lender declined to disclose terms of the agreement with Microsoft, which is concerned about rampant software piracy in the country.

The Redmond, Washington-based technology behemoth will sign a memorandum of understanding on Friday with China's number two wireless operator, China Unicom, aimed at forging a strategic partnership, a Unicom spokeswoman said.

Microsoft, facing slower growth of its core Windows business after a decade of frenetic growth, has diversified into areas such as electronics, business solutions and mobile software. It said in a statement it would spend $2.2 million to build a research laboratory in Beijing over the next five years to boost the city's software industry.

© Reuters