In an aggressive move to curb piracy and with a policy of charging the same prices for its software without taking into account the financial status of market, the giant has stirred some discontentment within the Chinese business community. Reuters added that the giant was snubbed in a software procurement by the city of Beijing in December.

To further beef up its presence in the Chinese market and in a move to improve ties with China, Microsoft will further invest in the country. This time, through education-related deals where it will inject a significant amount into China's computer educations.

An unnamed source was quoted in the official China Daily's Business Weekly saying that Microsoft will "pool 'hundreds of millions of yuan' into an effort with the ministry and universities called the 'Great Wall Plan'".

Earlier, Microsoft has established two joint venture investments with Chinese software firms as well as forging a deal with local mobile phone maker, TCL Mobile, to include its software in TCL's mobile phones and handheld computers.

Microsoft's chief executive, Steve Ballmer, will be announcing the agreements with the Ministry of Education and five Chinese universities on boosting software education in China during his two-day visit to Beijing starting June 27.