Microsoft fights to keep China business
InternetNews | at | by Mike
Microsoft is fighting to hold onto a multi-million dollar deal with the municipal government of Beijing. On Nov. 17, Microsoft beat domestic software developers to snag a $3.6 million, three-year software licensing deal with the Beijing municipal government. But the deal also drew the ire of local software vendors, as well as government officials who said that Beijing ignored a January 1, 2003, Chinese procurement law. On Nov. 30, Beijing canceled the order.
A Microsoft spokesperson confirmed the reports to internetnews.com. "We're still in talks with Beijing," he said.
In a written statement, Microsoft applauded Beijing's efforts to move all of its users onto licensed software and said it would hang in there during negotiations. At issue is how the Government Procurement Law defines foreign companies. According to Xinhua, Beijing's purchase was made through Microsoft's local reseller, Beijing Centre Electronic Technology.