The past year has seen Chinese PC makers such as Lenovo and Founder, as well as global makers like HP and Dell, selling an increasing number of PCs in China with the Windows operating systems pre-installed.
Around 30 percent of China's Lenovo PCs are now sold with pirated Windows systems, down from 90 percent last year, according to Microsoft's chief executive in China, Timothy Chen. More than 20 million PCs were sold in China last year.
Microsoft's growth in the country has also been boosted by new products including the Vista operating system.
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