BEIJING, May 12 -- Microsoft Internet MSN Division announced yesterday that it had already set up a joint venture with Shanghai Alliance Investment Ltd. (SAI), a Shanghai municipal government-funded company.

    The joint venture,"Shanghai MSN Network Communications Technology Co., Ltd.," received a national business license for value-added services issued by China's Ministry of Information Industry. Shanghai MSN can be considered a "Chinese company," as Microsoft and SAI each hold a 50% stake. MSN attracts 400 million internet users every month throughout the world.

    In order to open the door of the Chinese internet market, Microsoft did not hesitate when carrying out the first strategic acquisition in its 13 years in China. Microsoft disclosed that it had reached a strategic solo agreement with Tsinghua-Shenxun Science & Technology Co., Ltd. and planned to acquire part of its assets, but it refused to reveal a concrete figure. Tsinghua-Shenxun is a Chinese value-added mobile service provider, and Microsoft plans to set up a native MSN development and research center by way of the acquisition.

    All factors indicate that Microsoft is not simply trying to set up a web portal in China, but is pursuing much greater development goals, even positioning itself as a Chinese network giant. Microsoft's entry into the Chinese internet market will have a huge impact, and an "official" MSN will be a decisive force, changing the structure of the Chinese internet environment.

    (Source: Chinanews.cn)