China Threatens to Ban Microsoft Sales Over Software Compatibility

Beijing has warned Microsoft that it may ban the sale of its products in the country unless the software giant agrees to support Chinese government plans to promote domestic software programs, according to the official China Daily newspaper. The Chinese government is pushing Microsoft to adopt software standards being developed by the ministry and Chinese producers, rather than developing its own products. Microsoft chairman William Gates had traveled to Beijing two weeks ago to launch a Chinese language version of an office applications program, but the government is still dissatisfied with the company's cooperation.

Key Takeaways:

• Microsoft is being pressured by the Chinese government to support domestic software programs and adopt software standards being developed by the ministry and Chinese producers.
• The Chinese government has threatened to ban the sale of Microsoft's products in the country if the company does not comply with its demands.
• Microsoft has already launched a Chinese language version of an office applications program in Beijing, but the government remains dissatisfied with the company's cooperation.
• SunTendy Co., the leading software maker in China's infant software industry, has developed a competitor to Microsoft's popular operating system Windows, called Chinese Star.
• The market share of Chinese Star has dropped to 60% from 90% within half a year due to "unauthorized sales channels," according to Pan Jianxin, SunTendy's marketing manager.
• Microsoft has trained 140 Chinese vendors who are preparing a nation-wide lecture tour and will soon set up a wholly owned venture in China.
• Microsoft chairman William Gates has agreed to develop all its future Chinese software in China and said the question of industry standards is still open.

Statistics:

• 140: The number of Chinese vendors trained by Microsoft who are preparing a nation-wide lecture tour.
• 60%: The market share of Chinese Star, a competitor to Microsoft's Windows operating system, which has dropped from 90% within six months.
• 90%: The market share of Chinese Star that existed six months ago before its decline.
• Thousands: The number of copies of Windows sold in China by Microsoft without involving the ministry, as mentioned by William Gates.

Sources:

• "Microsoft urged to give up plans for own software standard, China Daily, March 12, 1993
• China Daily
• "William Gates, Microsoft chairman, visit to Beijing, March 10, 1993
• "SunTendy Co. develops competitor to Windows in China, China Daily, March 13, 1993
• SunTendy Co.