New Windows Unveiled for China -- WSJ
May 26 2017 - 3:02AM
Dow Jones News
Microsoft develops customized product to address government's
security concerns
By Alyssa Abkowitz
BEIJING -- Microsoft Corp. has unveiled a new Windows 10
software customized for the Chinese government to improve security,
including modifying the program to prevent data that is typically
collected from being transmitted to other devices.
The product addresses concerns by the Chinese government over
network security, including the desire to locally store data --
such as details on the hardware or applications being run -- and to
prevent overseas parties from accessing sensitive information.
In addition, games such as Solitaire that are normally bundled
into the software were removed because they aren't needed by
Chinese government employees, Microsoft said.
The Chinese government version also will have a customized Help
function, said a representative for Microsoft, which formed a joint
venture with state-owned China Electronics Technology Group to
develop the program.
CETC owns 51% of the joint venture and has traditionally
developed technology for the Chinese military and civilian use.
Microsoft developed the special Windows 10 version in an effort
to do business in China. Other U.S. tech companies, such as
Qualcomm Inc. and Intel Corp., have also struck joint ventures in
China in recent years.
The modified version of Windows 10 is an example of how global
companies are customizing products to meet Beijing's heightened
security demands. Next month, China's new cybersecurity law --
which sets up a committee to conduct security reviews of technology
products supplied to the Chinese government and critical industries
-- will take effect.
To develop a version suitable for the government, Microsoft
allowed its Chinese partner to review and inspect its source code
in a secure environment, but didn't allow them to manipulate it,
the representative said. Microsoft has been doing this as part of a
broader government-security program with more than three dozen
countries since 2003.
Some tech observers said limiting data storage to the devices
could be less secure; if the device was hacked, a lot of
information would be accessed. China was hit hard by the recent
WannaCry attack, in part because bootleg versions of operating
software.
"It's not very smart to have all data on one device," said a
lawyer who works in the tech industry in Beijing. "It could make
things less secure instead of more secure."
The modified Windows 10 represents a chance for Microsoft to
regain an important market in China. Approximately 16 million PCs
are used by the government, according to estimates from research
firm IDC. This version is only available to Chinese government
offices and state-owned enterprises in critical infrastructure
sectors. The company's Windows 8 and 10 consumer versions aren't on
government procurement lists.
The new Windows 10 version is already being used in pilot
programs by the national customs agency, an economy planning
commission in the city of Shanghai, and Westone Information
Technology, a state-owned tech company. A Microsoft spokesperson
said allowing these customers to use the software first let them
ensure it was installed and deployed properly.
The program still must go through a Chinese government review
before it can be included on official procurement lists.
The Microsoft spokesperson said the joint venture was in "active
discussions" with necessary entities to complete government
requirements, including finalizing a price and product name.
--Jay Greene in Seattle and Yang Jie in Beijing contributed to
this article.
Write to Alyssa Abkowitz at alyssa.abkowitz@wsj.com
(END) Dow Jones Newswires
May 26, 2017 02:47 ET (06:47 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
Microsoft (NASDAQ:MSFT)
Historical Stock Chart
From Apr 2024 to May 2024
Microsoft (NASDAQ:MSFT)
Historical Stock Chart
From May 2023 to May 2024