Microsoft investing over 3.7 billion in China over next five years

Looks like Bill Gates' visit with Chinese President Hu Jintao last week, which included a private dinner at Gates' home, paid off.  Shanghai Securities News reports that Microsoft plans to invest more than $3.7 billion in China over the next  five years.

The paper reported today that Microsoft signed a memorandum of understanding with China's National Development and Reform Commission agreeing to spend $700 million on PC hardware from China.  In addition, Microsoft will invest $100 million in business ventures with China's software companies.   Foreign media in China estimate the investment in Chinese software firms will be about $200 million, according to Forbes.

Just before President Hu's visit to Microsoft's headquarters in Washington state, Chinese PC maker Lenovo agreed to buy $1.2 billion worth of Microsoft software, Forbes reports.

Gates' primary goal in doing these deals is to get Chinese officials to crack down on pirated software.  At least from initial appearances, it looks like Gates might have hit a home run.  Cheap pirated software is a hard habit to break, so only time will tell.