In the coming two years, the Chinese government will prefer to buy the China-made software at the same capability/price ratio, which includes not only software made by Chinese companies, but also those made by foreign-funded or joint-venture companies in China, according to sources from Yu Cisheng, deputy director of the Beijing municipal government's Science and Technology Commission.

Will the redefinition of "Made in China" by Beijing municipal government produce an effect on multinational IT especially software enterprises as to their investment ways and policies in China?

Many foreign software companies meanwhile formed joint ventures at the time when the Beijing municipal government redefined the definition of "Made in China". But they all denied that their investment decisions were made on basis of the new policy because to make an investment decision needs a rational analysis and a long time consideration as well. Such a coincidence indicates that our investment environment and policies have become more and more mature.

Governmental policy is considered a vital factor for foreign enterprises in their investment. In addition, the foreign companies have determined to become local companies in China as what they have done. And they will increase the investment in China along with the ripening market and policies.

Microsoft is honored as a good example. Microsoft has never set up any joint venture in any other country except China. But now it has formed joint ventures in Beijing and Shanghai and launched cooperation with Chinese company and university as well. All the activities showed that Microsoft has been changing its market and investment policies in China.

(People's Daily July 23, 2002)