Microsoft makes new friends in China

Microsoft is further strengthening its presence in China with a $13m investment in the country, according to reports in the Chinese media.

Microsoft is to invest the money in Langchao, a Chinese software firm, the reports said.

Microsoft has already established a relationship with the company: the pair created a joint development centre last year.

The new investment by Redmond is intended to help the Chinese company further develop software applications around ERP and e-government.

The Chinese press is also reporting that Microsoft is soon to form a new alliance in the country with Indian outsourcing heavyweight Tata Consultancy Services (TCS), as well as local firms.

The union, according to Chinese news agency Xinhua, will see the creation of a huge software outsourcing company over the coming weeks. The group is aiming to employ 10,000 within the next 10 years.

TCS is expected to hold the lion's share of the company and is thought to have sought the partnership with Chinese firms in order to get easier access to the Chinese market.

Microsoft said the partnership will boost software development in the country.

"We believe the success of this international cooperation... will help accelerate the development of China’s software industry," a Microsoft spokeswoman said.