One of the biggest obstacles Microsoft has faced in China is the government’s reluctance to accept and operating system that’s developed by an American company, especially after the Snowden leaks. In order to get around this, the company has partnered with China Electronics Technology Group (CETC) in order to sell a customized version of Windows 10 to China’s government agencies and state-owned corporations. This version of Windows 10 will be designed specifically for the Chinese government, and is meant to alleviate concerns over American spying.
Microsoft has struck a deal with a Chinese technology company to sell its new Windows 10 operating system to the country’s civil service, the company said late on Wednesday. The new joint venture, which is subject to regulatory approval in China and is provisionally called C&M Information Technologies, will see Microsoft and its partner China Electronics Technology Group (CETC), license, deploy, manage and optimize Windows 10 for China’s government agencies and state owned enterprises. The joint venture will provide support and services for the customers. C&M Information Technologies will act as the “exclusive licensor” of Windows 10 and is working on a modified version of Windows 10 for the Chinese government. It will also provide support to the government customers. The move comes as Microsoft looks to improve its image in the world’s second-largest economy. U.S. companies in China received a bad reputation after National Security Agency (NSA) contractor Edward Snowden alleged that foreign products were being used for spying. And last year, China’s antitrust regulator conducted new raids on Microsoft’s offices in China.