In response to market rivals Google and Yahoo, Microsoft will invest about 100 million dollars a year in China for the next 3-5 years, channeling the funds into the internet, research and development in mobile communications, and digital entertainment, writes AFP (via paidContent), citing the Shanghai Daily. "The Internet is the focus of the total investment as we can't neglect the booming internet population in China," Zhang Yaqin, a Microsoft vice-president, told the newspaper.

The announcement follows criticism of Microsoft's willingness to help the Chinese government to restrict freedom of speech on the internet.