Microsoft's Research and Development Center in China

Shanghai is the next target of Microsoft. The largest city in the Peoples Republic of China will house Microsoft's new center for research and development. The center is to work on the company's MSN service. It is to be the first center of this kind to work outside the United States.

Microsoft's decision is explained with the fact that the corporation saw setbacks in some of its services working in China. One of its main issues concerns the resignation of the company's top executive Luo Chuan, who was responsible for the Windows Live unit. Now he is tipped to become first chief executive at a Chinese department of MySpace, which is a MSN look-alike website.

The Zizhu Science Park, in Shanghai, is the place where Microsoft is to establish its center and it is also the place where Intel Corp. has already set its own research office. Microsoft's center will develop there Internet software. The cost of the R&D center is about $ 20 million. A special technical support team will be working on the company's MSN Messenger. The company hopes that this on-line communication tool will play a significant role in life of Chinese teenagers.

Currently in China the communication program is used by more than 20 million people. The analyst at Media Partners Asia, Doug Crets, stated that Microsoft's plan to establish a research and development center in Shanghai may indicate the fact that the software giant is keen to take advantage of the Chinese somewhat flexible environment. He also mentioned that Microsoft looks forward to benefit from the pool of engineering talent, which Chinese market represents.

The huge market, where various global players look forward to take their piece of profitable cake, is quite advantageous for Microsoft. The company's investment might help consolidate its prominent position in Peoples Republic of China. Although the corporation has a development center in Beijing, set back in 1995, it lacks an R&D facility for MSN service.

Later MSN China looks forward to establish a partnership with Shanghai Media Group. Microsoft's new center is to develop software for one of China's biggest media companies. Shanghai Media Group works with online video and shopping business and Microsoft's goal in the partnership is to provide technical support.

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