CHINA

Beijing government officials in January awarded local Chinese software vendors software contracts, passing over bids from Microsoft. One such deal was with Beijing-based Red Flag Software Co. Ltd. to outfit government computers with its version of Linux. Meanwhile, the Hong Kong government has installed more than 100 Linux servers in various departments in the past three years. Public pressure to avoid dependence on single-vendor products has prompted government interest in open source. According to government statistics about half of the US$23.2 million spent on software during the 2000-2001 fiscal year went to Microsoft Hong Kong Ltd. President and Chief Executive Officer of Red Flag, Liu Bo, said in January that by using open source software, the government would strengthen security, have ownership of the intellectual property that is the foundation for its technology, increase competence of local software vendors and cut down on software piracy, which in 2000 reached 97 percent, according to the BSA.