Beijing rekindles Microsoft flame

In a surprising U-turn, Beijing has purchased software from Microsoft's despite cancelling its initial contract with the software firm in December.

Microsoft's reported $3.6m contract with Beijing was cancelled after Beijing was criticised for choosing the software giant over local software providers. Chinese law stipulates that domestic software should be favoured in such deals.

But municipal officials and industry executives claim that the city has bought a substantial quantity of Microsoft's products anyway, according to reports in the Financial Times on Tuesday. It reported that Beijing municipal government declined to comment on its software spending since cancelling its initial deal with Microsoft.

A Microsoft spokesperson confirmed to ZDNet UK that it had supplied software to Beijing.

"We appreciate and support the Beijing government’s decision to use legal software including Microsoft’s products within its government entities and the concrete actions it has taken," said the spokesperson.

The Chinese government originally decided to place the order with Microsoft after counterfeit software was found to be in use in China's civil service, according to earlier reports.