State-owned Software Firm Ties up with Microsoft China

A leading Chinese State-owned software company announced Friday that it would tie up with Microsoft China to build a specific security product for data transmission on Microsoft Windows 2000 and the coming Windows XP Professional operation system.

China National Computer & Technology Service Corporation (CS&S) and Microsoft China said in Friday's agreement that the product would consist of a software driver, include in the Windows boxed sold to customers, and security card hardware sold by CS&S.

The announcement, which came amid wide concerns both from the public and the government on information security issue, is expected to safeguard data transmission involving mission-critical IT (information technology) projects, e-government and financial projects in China.

CS&S is a leading state-owned high-tech enterprise specializing in computer software.

According to the agreement, CS&S will be responsible for the development and production of the Chinese security encryption module, including both software and hardware, and will own the intellectual property rights for the product it develops.

After the product receives final approval from the State Encryption Administration of China, it will be packaged with Windows sold in China. Microsoft will support CS&S in the development process, by providing relevant technical support to ensure that the CS&S product is fully compatible with Windows.

The final product is expected to be ready to market during the winter 2002-2002.

Windows is currently the world's leading operation system and the dominant in China as well.

"The cooperation will provide a local security solution for mission-critical application in various vertical industries. This agreement and the product built by us will enable Chinese customers to get the full benefit of Microsoft technologies," said Tang Min, president of CS&S.

The cooperation has garnered full support from the both parties involved, including Microsoft CEO Steve Ballmer, said Alexander Huang, regional director of Microsoft Greater China.

"This agreement accounts for an unprecedented cooperation between Microsoft and the Chinese software industry. It also reflects Microsoft's long-term commitment to China," he said.

According to Shen Changxiang, an academician and expert on national security, information security is essential to national security and social stability.

The cooperation between CS&S and Microsoft provides a "lock" that is made in China, with Chinese intellectual property rights specific to local requirements, he said.

The State Encryption Administration will review and evaluate this "lock" according to local requirements for secure data transmission to ensure it is suitable for mission-critical IT projects, e-government and financial projects.



Source: China Daily


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