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Chinese Authorities Repeal Domestic Preference in IT Procurement

Sina Tech, 7/11/11

China's Ministry of Finance and other government agencies recently abolished the national government's procurement policy giving priority to "indigenous innovation" products. He Hongfeng, a professor at the Nankai University School of Law, said that the United States government and European governments had pressured the Chinese government to do so, claiming discrimination against overseas companies.

Xiao Bin, VP of Kingsoft (3888.HK) subsidiary Zhuhai Kingsoft Office Software, said that the government's moves to give priority to domestic software had made a major difference for Kingsoft. Government procurements account for 56% of sales of Kingsoft's WPS office suite at present, and Kingsoft has seen growth of 200% over last year in governmental procurements of WPS. The company expects total WPS revenues to grow by 20% to 30% this year.

Keywords: regulation government policy Xiao Bin Kingsoft procurement software office software Ministry of Finance 3888.HK WPS Office revenue

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