Microsoft and the China Electronics Technology Group (CETG) have announced a new joint venture which will provide Windows 10 related services to Chinese government organs and state owned enterprises.
CETG’s Chairman Xiong Qunli expressed his willingness for international cooperation. “We hope the international society, be it academia, enterprises or nations, will embrace an open attitude for cooperation.”
“For us, as a Chinese company, we have our own core technology and equipment, and we are willing and open to international cooperation,” he said. “Along with our partners, we can build a safe and trustworthy cyber environment.”
The news comes a few days after it was revealed that Microsoft would be supplying the Chinese government with a custom version of Windows 10, the latest version of its operating system. The deal will allow the Seattle-based software giant to finally start making some serious money from the Chinese market, instead of watching helplessly as older versions of its software are pirated.
The new venture is still subject to regulatory approval and has a registered capital of 40 million US dollars. Microsoft will hold a 49% stake in the venture, while CETG will hold 51%.
The development is an improvement in the American company’s relationship with the Chinese authorities. In 2014 it was the target of an anti-monopoly probe by the Chinese government. A government procurement agency had also previously banned PCs running Windows 8 software.
Microsoft has previously signed deals with other Chinese tech giants such as Baidu, Tencent and Xiaomi.