According sources wishing to remain anonymous, Microsoft is planning a $20 million research-and-development center in Shanghai's Zizhu Science Park for its online MSN service, its first such center outside the United States. A technical support team for MSN Messenger, currently popular among 20 million teenagers and young professionals in China, will also be available. The MSN R&D center will be used to develop Internet software, possibly in partnership with one of China's biggest media companies, Shanghai Media Group. The fact that the software giant has chosen China indicates that the company is eager to take advantage of the relatively flexible working environment and large pool of engineering talent, said Doug Crets, Hong Kong-based analyst at Media Partners Asia.
"It's a clear signal that Microsoft won't give up its online MSN service in China even though it may have some problems in its local operations. Twenty million dollars is really small money to Bill Gates, but it's important to notice that Microsoft has chosen Shanghai for its first overseas MSN R&D center," said one unidentified source.
News source: News.com