Looks like Bill Gates' visit with Chinese President Hu Jintao last week, which included a private dinner at Gates' home, paid off.  Shanghai Securities News reports that Microsoft plans to invest more than $3.7 billion in China over the next  five years.

The paper reported today that Microsoft signed a memorandum of understanding with China's National Development and Reform Commission agreeing to spend $700 million on PC hardware from China.  In addition, Microsoft will invest $100 million in business ventures with China's software companies.   Foreign media in China estimate the investment in Chinese software firms will be about $200 million, according to Forbes.

Just before President Hu's visit to Microsoft's headquarters in Washington state, Chinese PC maker Lenovo agreed to buy $1.2 billion worth of Microsoft software, Forbes reports.

Gates' primary goal in doing these deals is to get Chinese officials to crack down on pirated software.  At least from initial appearances, it looks like Gates might have hit a home run.  Cheap pirated software is a hard habit to break, so only time will tell.

Microsoft investing over 3.7 billion in China over next five years originally appeared on BloggingStocks on Thu, 27 Apr 2006 09:09:00 EST. Please see our terms for use of feeds.

Chinese President Hu Jintao may be ready to crack down on pirates in his country who ignore international copyright and intellectual property protections.  While touring Microsoft's Washington state campus, President Hu told bill Gates, "Because you, Mr. Gates, are a friend of China, I'm a friend of Microsoft." 

President Hu says he deals with Microsoft operating system daily.  Chinese government officials indicated they will crack down on the sales of illegal copies of Microsoft's Windows operating system.  Some computer makers plan to ship more computers with legitimate Windows software installed.  Microsoft will eventually see an increase in sales to China, but analysts believe it will be a long time before there is a significant impact on Microsoft's bottom line.

After touring Microsoft's facilities, Bill Gates hosted a private dinner at his home for President Hu with 100 guests, including executives from Costco Wholesale Corp., Weyerhaeuser Co., Boeing and Amazon.com Inc.  Boeing got the best news from President Hu, who agreed to purchase 80 Boeing 737 jets valued at $5.2 billion.  Well that's list price ... the final deal will probably include some price discounts.

Let's hope President Hu's promise to Microsoft will extend to other holders of U.S. copyright and intellectual property rights- - including other software producers, movie studios, and apparel brands.

Did Microsoft succeed in getting China to crack down on copyright pirates? originally appeared on BloggingStocks on Wed, 19 Apr 2006 08:03:00 EST. Please see our terms for use of feeds.