Friday, June 28, 2002

Microsoft Will Invest $750-Million in Chinese Universities and Companies By FLORENCE OLSEN The Microsoft Corporation announced on Thursday that it would invest $750-million in China during the next three years, with a significant portion going to basic research and computer-science education in Chinese universities and research institutions. About $24-million will go initially to create software colleges within five leading Chinese universities -- Peking University, Shanghai Jiao Tong University, Tsinghua University, the University of Science and Technology of China, and Zhejiang University. The agreement between Microsoft and China's Ministry of Education calls for Microsoft to assist the new software colleges with creating a curriculum and setting up laboratories and academic exchanges. The remainder of the multimillion-dollar cash investment will go directly into joint-ventures with Chinese manufacturing firms and software companies. Steve Ballmer, Microsoft's chief executive, made the announcement during a two-day visit to China. "Talent, technology, demand, and capital" are needed to develop a dynamic software industry in China, Mr. Ballmer said in a news release. And a dynamic software industry in China, he said, will benefit the global high-tech economy. The joint-venture portion of the deal, which was made with China's State Development and Planning Commission, was hailed as the largest ever such investment by a foreign software company in the world's most populous country. Among other benefits, the partnership will give Microsoft a forum to offer "guidance on building a healthy information-technology ecosystem" based on intellectual property rights, protection and enforcement, said Helen Baric, international public-relations manager for Microsoft in Asia. Microsoft has had difficult relations with China over the problem of software piracy. "One of the ways to promote intellectual-property [protection] is the development of local software companies," Ms. Baric said. Chinese officials reportedly are keen on developing the country's software industry, which currently generates revenues of only $1.5-billion a year. Background article from The Chronicle: China to Establish Software Institutes at 33 Universities (11/26/2001) Easy-to-print version E-mail this article

College Board approves major changes for the SAT U.S. appeals court says colleges can't release files from student judicial proceedings Education Department announces panel to review and strengthen Title IX 2 former administrators of LeMoyne-Owen College are accused of embezzling student-loan funds Microsoft will invest $750-million in Chinese universities and companies