Microsoft has agreed
to buy $700m worth of Chinese hardware in a five-year deal.
Redmond will also give $200m to the
National Development and Reform
Commission, which invests in China's software companies and enhances
technical cooperation and training.
The deals have been made following a trip by Chinese president Hu Jintao to
America, during which he spoke highly of Bill Gates and
openly welcomed an increase in Microsoft's investment in his country.
"I admire what you have achieved at Microsoft. Because you, Mr Bill Gates,
are a friend of China, I'm a friend of Microsoft," said President Hu.
Microsoft will also benefit from the relationship, following a deal announced
last week that will see Chinese manufacturer
Lenovo buy $1.2bn worth of
Windows software over the next 12 months.
Lenovo will preinstall the Windows software on its PCs, which Microsoft hopes
will cut the amount of pirated copies of its operating system within China.
Three other Chinese PC manufacturers also plan to buy $400m worth of Windows
software.
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