Microsoft to invest US$100m annually in China

Microsoft Corp will invest about 100 million dollars annually over the next three to five years in China, the world's second largest Internet market with 111 million users, state press reported.

The investment, in response to mounting pressure from rivals Google and Yahoo!, will be channeled into the Internet, research and development in mobile communications, and digital entertainment, the Shanghai Daily reported.

"The Internet is the focus of the total investment as we can't neglect the booming Internet population in China," Zhang Yaqin, a Microsoft vice president, told the newspaper.

The US software giant established a new research group in Beijing on Wednesday to integrate its online MSN division, technical support and research centers, the paper said.

Microsoft plans to employ 3,000 people in the Microsoft China RD Group Center by the end of 2008, up from 800 staff currently employed, it said.

(Agencies)