Microsoft signs XP into China

Microsoft has signed a landmark deal with the four most prestigious PC manufacturers in China to pre-install its XP operating system on 60 per cent of the PCs sold in the country.

The deal is significant for Microsoft because the Chinese market is currently the third largest single PC market in the world and is also one of the fastest growing.

Microsoft currently suffers significantly from software piracy, with copies of XP selling for as little as $5, and says it hopes this deal will stamp much of that out.

Microsoft's deal is with Legend, TCL, Tongfang and Great Wall, who together sell three out of every five PCs in mainland China.

Whilst the deal is good news in the battle against software piracy, it may spell the end of hopes in some quarters that the Chinese PC market will be able to avoid the Windows dominance experienced by the rest of the world.

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